alleryStart learning →5,000 shares of Rs 10 each are bought back at Rs 18. The total cash paid to shareholders is
ARs 90,000
BRs 50,000
CRs 1,80,000
DRs 80,000
Answer & Solution
Correct answer: A. Rs 90,000
Cash paid is the buy-back price times shares, so 5,000 times Rs 18 is Rs 90,000.
Keep practising Buy-Back of Securities
Browse all Buy-Back of Securities questions for CA Inter, or explore more Accounting topics.
Related questions
Under Section 68, specified securities includeAfter a buy-back, a remaining investor's proportionate ownershipThe details of the transfer to capital redemption reserve are to be disclosed in the40,000 shares of face value Rs 5 are bought back at Rs 9. Equity share capital is debited Which can absorb the premium paid on a buy-back?Shares that a company has bought back areWithin six months after a buy-back, a company may still make aThe register of bought back shares is kept at the company's