hello sir, i am getting confused in calculation of calculation of proceeds of share capital
$000 $000
Equity and liabilities:
Share capital 120 80
Share premium 60 40
Retained earnings 85 68
265 188
Non?current liabilities:
Bank loan 100 150
––––– –––––
365 338
––––– –––––
why we will deduct share premium amount from 120. 120 is already the amount less share premium
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cash flow financing activities
5y ago#1We do not deduct the share premium account.
The total equity at the start of the year was 80 + 40 = 120
The total equity at the end of the year was 120 + 60 = 180
Therefore the cash raised = 180 - 120 = 60.
okay sir thank you for help. you are best
5y ago#3You are welcome :-)
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