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please explain me

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › please explain me

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
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  • May 27, 2015 at 6:35 pm #249650
    Avatarshilpee
    Member
    • Topics: 8
    • Replies: 3
    • ☆

    (1)how to calculate the one-for-two basis and one-for-four basis

    (2)how do we calculate ordinary share capital £400,000
    (£400,000 share of £1 each fully paid)

    May 28, 2015 at 8:10 am #249734
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54837
    • ☆☆☆☆☆

    You are presumably asking about rights issues and bonus issues?

    A 1 for 1 issue means that they issue 1 new share for every 1 existing share. So if someone owns 100 share at the moment they are issued with another 100 new shares.

    A 1 for 2 issue means that 1 new share is issued for every 2 existing shares held. So if some currently own 100 shares they will be issued with another 1/2 x 100 = 50 new shares.

    I don’t understand your second question – 400,000 shares x $1 = $400,000!

    Have you watched the free lecture on limited companies where all of this is explained?

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