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Hi
I am struggling to understand where the amounts of equity shares are derived from for the following dates: answers show below
1.9.08 1,000,000
31.1.09 1,400,000
1.04.09 2,000,000
31.05.09 2,600,000The answers I was getting is below
1.9.08 Opening bal 500,000
31.1.09 Issue at fmp 200,000
1.04.09 Bonus issue 3:7 x (500+200)= 300,000
31.05.09 Rights issue 3:10 x (500+200+300)= 300,000Please can you explain where I am going wrong?
Thank you
Well, it looks to me (without looking at the question) that these ar 50 cent nominal value shares
In addition, you should be cumulatively adding each new increase in shares to the previous number
Using your (wrong) figures (wrong, because they should be doubled to find the number of shares rather than their overall $ value) the first number is 1,000,000 ($500,000 *2 to get the NUMBER of shares)
ADDED to that is the $200,000 worth of new shares – ie another 400,000 so at that date there are now 1,400,000 shares in issue
Can you take it from there?
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