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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › capital structure
RIT Co is a limited liability company with 200,000 25c shares in issue. At
1 January the balance on the share premium account was $75,000. The following transactions occur during the year ended 31 December 20X6:
31 January There was a fully taken-up 2 for 5 rights issue. The issue price was $1.80.
12 August There was a 1 for 10 bonus issue made using the share premium account.
What are the balances on the share capital and share premium accounts of RIT Co at 31 December 20X6?
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