alleryStart learning →Debt Rs 80 lakh, equity Rs 20 lakh. Issue cost Rs 5 lakh. Split?
AAll Rs 5 lakh to debt
BDebt 4 lakh, equity 1 lakh
CSplit equally to each part
DAll Rs 5 lakh to equity
Answer & Solution
Correct answer: B. Debt 4 lakh, equity 1 lakh
Costs follow the 80:20 split of proceeds, so 5 lakh divides into 4 lakh and 1 lakh.
Keep practising Ind AS 32 Financial Instruments: Presentation
Browse all Ind AS 32 Financial Instruments: Presentation questions for CA Final, or explore more Financialreporting topics.
Related questions
Pro rata rights at a fixed price in any currency are?Which are 'entities' under Ind AS 32?Must a financial instrument contract be written?On reclassifying equity to liability, difference goes to?Puttable equity must sit in which class?Puttable equity must entitle holders to?A master netting arrangement provides?Is a sinking fund offset against the debentures?