[corinne]

Hi, you’re trying to work out the balance on the share capital (SC) and share premium (SP) accounts at the beginning of the year, so the balances on the SC and SP accounts will be less than at the year end, i.e. less than $50m and $15m respectively.

To do this multiply the SC balance at the year end by 20c for the SC rights issue movement and by 22c (42c-20c) for the SP movement:

SC SP
$m $m
Bal. 30 09 X2 50 15
Rights issue:
SC ($50m x 20c) (10)
SP ($50m x 22c) (11)
Bal. 30 Sep X1 40 4

I hope that makes sense.

[corinne]

Thank you Mike 🙂

[Author]

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