A Ltd. has 20,000 Equity Shares of Rs. 10 each. Balance of Profit & Loss Account is Rs. 1,40,000. It has issued 6% Debentures in the past of Rs. 1,20,000.
At the annual general meeting it was resolved that:
(i) To pay a dividend of 10% in cash. Corporate dividend tax rate is 17%.
(ii) To issue 1 bonus share for every 4 shares held after 1 month of right issue.
(iii) To give existing shareholder right to purchase one Rs. 10 share for every 4 shares held. All the shareholders exercised the right.
(iv) To repay debentures at a premium of 5%.
Balance of Profit &. Loss A/c after giving effect to above transactions will be -
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