On 30.6.2019 X Ltd. has 6,750, 11% Preference shares of Rs. 100 each, fully paid-up. Under the terms of the issue, the preference shares are redeemable on 30.9.2019. To redeem preference shares it was decided to issue equity shares at Rs. 11 per share payable as follows:
(i) Rs. 2 on application.
(ii) Rs. 3.50 (including premium) on allot¬ment and the balance as call money on 1.1.2020.
Issue of equity shares was fully subscribed and allotment was made on 1.9.2019. Amount due on allotment were received by 25.9.2019. Company does not have any free reserve. How many equity shares should be issued by the X Ltd. to make the funds available for redemption of preference shares?
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