Buy-Back of Shares
Question 1:
Balance Sheet of Ramakant Pvt. Ltd
| Liabilities | ₹ | Assets | ₹ |
| 50,000 Equity Shares of ₹ 10 each (fully paid up) General Reserve 12% Debentures Sundry Creditors | 5,00,000 1,20,000 3,00,000 80,000 | Fixed Assets Bank Balance Other Current Assets | 8,00,000 80,000 1,20,000 |
| 10,00,000 | 10,00,000 |
The above companyy wishes to buyback 5000 Equity Shares at par.
Pass necessary journal entries and prepare Balance with relevant notes to accounts as per Schedule III of Companies Act, 2013
Question 2:
Balance Sheet of Vikas Pvt. Ltd.
| Liabilities | ₹ | Assets | ₹ |
| 50,000 Equity Shares of ₹ 10 each (partly paid up) General Reserve Securities Premium 11% Debentures Sundry Liabilities | 4,00,000 60,000 30,000 2,00,000 1,10,000 | Fixed Assets Bank Balance Other Current Assets | 6,00,000 80,000 1,20,000 |
| 8,00,000 | 8,00,000 |
The company decided to buyback 5,000 Equity Shares for ₹ 15/- in complying to provisions of the Indian Companies Act, 2013. Pass journal entries accounting for buyback of shares and prepare relevant notes to accounts with Balance Sheet as per Schedule III of Companies Act, 2013.
Question 3:
Following is the Balance Sheet of Christopher Pvt. Ltd.
| Liabilities | ₹ | Assets | ₹ |
| 6,00,000 Equity Shares of ₹ 10 each 50,000, 12% Preference Share Capital General Reserve Profit and Loss A/c Securities Premium 12% Debentures Sundry Creditors | 60,00,000 50,00,000 20,00,000 50,00,000 30,00,000 40,00,000 20,00,000 | Fixed Assets Investments Current Assets | 1,50,00,000 60,00,000 60,00,000 |
| 2,70,00,000 | 2,70,00,000 |
The company decided to buyback maximum possible shares at an offer price of ₹ 12/- per share. Current Assets includes Bank Balance of ₹ 30,00,000.
(i) Calculate maximum number of shares that can be bought back.
(ii) Calculate maximum number of shares in offer price is ₹ 120/-.
