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Quick Limited has Equity Capital ₹45 lakh (45,000 shares of ₹100), Reserves: General ₹74 lakh, Securities Premium ₹30 lakh, P&L ₹25 lakh, Revaluation Reserve ₹4 lakh, Statutory Reserve ₹6.5 lakh; Loan Funds ₹350 lakh. Market price ₹250; buy-back at 20% over market. What will be the Equity Share Capital after the buy-back of 6,000 shares of ₹100 each?
A₹33,75,000
B₹30,50,000
C₹45,00,000
D₹39,00,000
Answer & Solution
Correct answer: D. ₹39,00,000
1. Step 1: Original paid-up equity capital = 45,000 × ₹100 = ₹45,00,000.
2. Step 2: Shares bought back × face value = 6,000 × ₹100 = ₹6,00,000.
3. Step 3: Equity after buy-back = 45,00,000 - 6,00,000 = ₹39,00,000.
_Source: ICAI BoS CA Inter Paper 1 Practice MCQ Paper (89270bos-aps3012-int-p1), Q.14_