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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 68265 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
We 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 = 180Therefore the cash raised = 180 – 120 = 60.
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