Issue of Right Shares 6. (a) (a) A company offers new right shares of 100 each at 20% premium to existing shareholders on one for four shares. The cum-right market price of a share is * 140. You are required to calculate (i) Ex-right value of a share; (ii) Value of a right. b) A company having 1,00,000 shares of 10 each as its issued share capital, and having a market value of 45 issues rights shares in the ratio of 1:5 at an issue price of 25. Pass journal entry for issue of right shares.