Q.1 On 1st January 2023, Singh had 20,000 equity shares in X Ltd. Nominal value of the shares was ₹ 10 each but their book value was 16 per share. On 1" June 2023, Singh purchased 5,000 more equity shares in the company at a premium of 4 per share. On 30th June, 2023, the directors of X Ltd. announced a bonus and rights issue. Bonus was declared at the rate of 1 equity share for every 5 shares held and these shares were received on 2nd August, 2023. The terms of the rights issue were: (a) Rights shares to be issued to the existing holders on 10 August, 2023. (b) Rights issue would entitle the holders to subscribe to additional equity shares in the Company at the rate of one share per every three held at 15 per share the whole sum being payable by 30th September, 2023. Existing shareholders were entitled to transfer their rights to outsiders, either wholly or in part. (c) Singh exercised his option under the issue for 50% of his entitlements and the balance of rights he (d) sold to Ananth for a consideration of 1.50 per share. (e) Dividends for the year ended 31st March, 2023, at the rate of 15% were declared by the Company and received by Singh on 20th October, 2023. (1) On 1st November, 2023, Singh sold 20,000 equity shares at a premium of 3 per share. The market price of share on 31-12-2023 was 14. Show the Investment
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