Hey everyone I've doubt regarding one adjustment of Financial Statements of Companies. I've seen lectures of it, but still I'm getting confused. Please explain the below adjustment in a simple way. 🙇

Question

Rajiv · Answer

6000*100 = 600,000 2000*60 = 120,000 1900*40= 76000 100*90 = 9000 -------------------------- Total = 805000 (-)100*50=(5000) ---------------------------- Share capital= 800,000

Sujal · Answer

8000 shares are actually issued, hence it is shown under share capital as 8000sh of 100 each, Further, the difference between reissue price (i.e 90-40 would be shown under capital reserve as Equity share capital a/c dr. To capital reserve a/c Final dividend is declared after b/s date the same will not form part of b/s !!!

Hey everyone I've doubt regarding one adjustment of Financial Statements of Companies. I've seen lectures of it, but still I'm getting confused. Please explain the below adjustment in a simple way. 🙇

2 answers

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