Sir:
Question #2
At 31 December 2004 a company's capital structure was as follows:
Ordinary share capital. 125,000
500,000 shares of .25c each
Share premium account. 100,000
In the year ended 31 December 2005 the company made a rights issue of 1 share for every 2 held at $1 per share and this was taken up in full. Later in the year the company made. Bonus issue if 1 share for every 5 held, USING THE SHARE PREMIUM ACCOUNT FOR THE PURPOSE.
What was the capital structure at December 31, 2005.
My calculations:
# shares. Share capital. Share premium
500,000. 125,000. 100,000
250,000. X .25. 62,500. 187,500. (250,000 @.75)
Where do I go from here. And, given the answer, I must have done something wrong.
Thanks
ACCA Forums
FAChapter 13 Accounting for limited companies
Also question 5:
At JUNE 30 2005 the capital reserves of smith were:
Ordinary shares of $1 each. 100
Share premium 80
During the year. Ended June 30, 2006
1 September 2005. A bonus issue of one ordinary share for every two
held USING THE SHARE PREMIUM ACCOUNT.
1 January 2006. A fully subscribed rights issue of two ordinary shares
For every five held at that date at $1.50 per share.
What would be the balance on each account be at 30 June 2006?
My workings:
# shares. Share capital. Share premium
100. 100. 80
50. ? ?
60. 60. 30
Thanks
11y ago#2This forum is for students to help each other.
If you want me to answer then you must ask in the Ask the ACCA Tutor Forum
Carol Share Premium will be 80-50+75=105
And Share Capital=100+50+150=300.
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