[Tina]

how did you come up with this result? calculation..

thanks

[Tina]

how to solve this question?

at the start of the year company had balances on its 25 C equity shares capital account and share premium of 560.000 and 285.000 respectively.

durring the year company issued bonus shares on the basis of 1 for 4 shares already held by capitalising part of its general reserves.

Later in the year, the company made a new issue of shares at full market price

at the year end there were balances on the share capital and share premium account 960.000 and 400.000

what price were tne new shares issued for and how much share premium was received on each new share?

thank you for your answer,

[Author]

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