Model: Valuation of fully paid and partly paid shares Following is an extract of the balance sheet of SR Ltd. as on 31 March 2010:
5,000, 10% Preference shares of Rs.100 each
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10,000 Equity shares of Rs.10 each, Rs.5 paid up
10,000 Equity shares of Rs.10 each, Rs.2.50 paid up
10,000 Equity shares of Rs.10 each, fully paid up
Reserves and surplus
On revaluation of assets, on 31 March 2010, it was found that they had appreciated by 1,00,000 over their value in the aggregate.
The Articles of Association of the Company state that in case of liquidation, the preference shareholders would have a further claim of the surplus assets, if any.
You are required to ascertain the value of each equity share assuming that liquidation of the company has to take place on 31 March 2010 and that the expenses of winding up are NIL.