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GKL Co. a limited liability company, has 20 000 50c shares in issue
(each issued for $1.25 ) and makes a 1 for 4 bonus issue, capitalising the share premium account.what are the balances on the share capital and share premium accounts of GKL Co after this transaction
Please don’t set me test questions and expect me to provide you with an answer.
If you found this question in a book, then you must have an answer in the same book and you should ask about whatever it is in the answer that you are not clear about – then I will explain.
If you were set this question as a test, then we certainly do not do your homework for you – tell me what you think the answer is and then I will tell you whether or not you are correct.Everything you need to be able to answer this question is covered in my free lectures. The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
Hello sir, please help me.
When a company makes a rights issue of equity shares which of the following effects will the issue have?
Why is not correct the answer of “investment are increased “?
Have you watched my free lectures?
I would need to see the whole question, but as far as the company is concerned then having a rights issue is not investing in anything – it is raising more money from existing shareholders. Whether or not they then invest this money in anything is a completely separate matter (they might simply be using the money to repay borrowings).
Thanks a lot sir, i got it. Yes I’ve watched free lectures .they’re so helpful for me .I appreciate it .
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