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Trial Balance Figure
Equity Share (25cent each) amount 56,000,000
(Shares, 56000000/.25 = 224000000)Xtol made a fully subscribed rights issue of equity share capital based on two new shares at
60 cents each for every five shares held. The market price of Xtol’s shares before the issue was $1·02 each. The issue has been fully recorded in the trial balance figures.
How i can find existing old shares?You said on February 24 that you would change your profile picture, but you still have not done so.
Please change it immediately – the ACCA does not allow their logo to be used and will hold OpenTuition as well as yourself responsible.
Extremely sorry sir i forgot that, now please give me answer the above question..
This is easier to explain with smaller numbers. In fact, I’m going to use the figure of 56 shares as being the number now in issue. You can multiply the figures by 1,000,000 for yourself!
If there are now in issue 56 shares and that’s the number AFTER a 2 for 5 rights issue, how many we’re in issue BEFORE the rights issue?
Well, for every 5 that you used to own, you now have an additional 2.So now you have 7
It follows that, for every 50 that you used to own, you now have 70
And for every 40 that you used to own, you now have 56And if you now have 56, then you must have had 40 before
And if there are now 56,000,000 in issue, then there must have been 40,000,000 before the rights issue
Is that better?
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