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at 31 dec 2001 the capital structure of a company was as follow
ordinary share capital $100000 shares of 50 c each 50000
share premium account 180000
during 2002 the company made a bonus issue of 1 share for every 2 held using the share premium account for the purpose and later issued for cash another 60000 shares at 80 c per share .what is the company capital structure at 31 dec 2002
ordinary share capital share premium account
A 130000 173000
B 105000 173000
c 130000 137000
d 105000 137000sir please solve this question
If you want me to answer then in future you should ask in the Ask the Tutor Forum – this forum is for students to help each other 🙂
The answer is B (although presumably you already know the answer since the BPP Revision Kit also contains answers!)
I do suggest that you watch the free lecture on company accounts where bonus issues and rights issues are explained in full.
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