How do you work this question ON share capital (company accounts)?
Ordinary share $1 each $100 Share premium $80
DURING THE YEAR END 30 June the following transactions took place. 1 Sept 2005 a bonus issue of 1 ordinary share for every 2 held, using the share premium account
1 Jan 2006 a fully subscribed rights issue of 2 ordinary shares for every 5 held at that date, at 1.50 per share.
What should the balances be on each account at 30 June 2006?