Read the following information carefully and answer the question.

The Balance Sheet of ABC Ltd as on 31 March 2022:

Additional information :

1. Market price of share = 34

2. Net profit after tax = 1,50,000

3. Tax = 50,000

Book Value per share will be :

₹14.60

The correct answer is option 2- ₹14.60.

Book value per share = Equity shareholders funds/ No. of equity shares
                                = 5,84,000/40,000
                                = ₹14.6

Shareholders’ Fund = Equity Share Capital + Preference Share Capital + General Reserve
                             =  4,00,000 + 1,00,000 + 1,84,000
                             = 6,84,000

Equity shareholder fund =  Shareholders’ Funds – Preference Share Capital.
                                   = 6,84,000 - 1,00,000
                                   = 5,84,000