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On sub-division of 10,000 equity shares of ₹100 each (fully paid) into shares of ₹10 each, the journal entry credits which account?
ACapital Reserve
BBank A/c
CSecurities Premium
DNew Equity Share Capital (₹10) A/c
Answer & Solution
Correct answer: D. New Equity Share Capital (₹10) A/c
1. Step 1: Per Ch 14 illustration: "Equity Share Capital (₹100) A/c Dr ... To Equity Share Capital (₹10) A/c".
2. Step 2: This records the swap of old denomination capital for new.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 14 "Internal Reconstruction"_