20X2 20X1
Ordinary shares of $0.5 each $750 $500
Share premium $350 $100
I calculated the amount of bonus issue to be 50 but in the bpp kit it is given as 100. Which is correct and why
Also I calculated the amount of cash received to be 500 but it is given as 400 in the bpp kit.
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3y ago#1How have you calculated it? Without seeing what you have done then it's difficult to know where you have gone wrong.
In the question it is mentioned that a bonus issue of one new share for every ten held was made.
I calculated the amount of bonus issue to be 500/0.5 *1/10*0.5
3y ago#3It looks like it should be the 50 that you have calculated. Not sure where their 100 comes from, unless it is just the number of shares issued as part of the bonus issue.
The following answer is provided:
Issue of shares
share capital and premium b/f (500+100) $600m
Bonus issue (500/0.50 * 1/10) $100m
cash received $400m
share capital premium c/f 1100
Is it incorrect
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