Question
Rajesh Exports ltd. shares are trading at Rs. 80 per share. Firm is considering giving bonus shares in the ratio of 1: 10. Explain how
Rajesh Exports ltd. shares are trading at Rs. 80 per share. Firm is considering giving bonus shares in the ratio of 1: 10. Explain how the balance sheet and the share price of the firm will be impacted after the event. Following is the balance sheet of Rajesh Exports.
Balance Sheet as on 31st March, 2020
| a | Amount (in Rs.) | Assets | Amount (in Rs.) |
| Share Capital (1,20,000 Equity Shares of Rs. 10 each) | 12,00,000 | Fixed Assets | 14,00,000 |
| Reserve and Surplus | 15,00,000 | Current Assets (inclusive of cash Rs. 3,00,000) | 13,00,000 |
| Total | 27,00,000 | Total | 27,00,000 |
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Advanced Accounting
Authors: Debra Jeter, Paul Chaney
6th edition
978-1118742945, 111874294X, 978-1119045946, 1119045940, 978-1119119364
