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Sub-division of shares of ₹100 each (₹75 paid up) into shares of ₹10 each will:
AMaintain the same proportion of paid-up to unpaid amount
BChange the proportion between paid-up and unpaid amount
CMake all shares fully paid up
DCancel partly-paid shares
Answer & Solution
Correct answer: A. Maintain the same proportion of paid-up to unpaid amount
1. Step 1: Per Sec 61, sub-division must maintain the same proportion between paid-up and unpaid amount.
2. Step 2: Example from Ch 14: 10,000 × ₹100 (₹75 paid) → 1,00,000 × ₹10 (₹7.50 paid).
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 14 "Internal Reconstruction"_