Changes in Equity

Is there any particular reason that you haven’t given me full information?

What date was it when the balance figures in the question were 45,800,000 and 3,200,000?

Ah! This is the important bit!!!

“Trial balance is as at 30 September 20X3”

This means that the figures in the trial balance INCLUDE the 4 million new shares issued on 31 December 2012 at $1 per share

That $1 per share represents one share with a nominal value of 20 cents and an 80 cent share premium

So the recording of the issue of 4 million new shares will have increased the share capital account figure by 4 million x 20 cents = $800,000 and, at the same time, will have increased the share premium account balance by 4 million x 80 cents = $3,200,000

If these two account balances have been increased by these two amounts and we arrive at the figures in the trial balance of $45,800,000 and $3,200,000 respectively that must mean that at the start of the year on 1 October 2012 the respective opening amounts were $45,000,000 and $Zero

OK now?