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equity shares of 20 cents each note 1 50000
(1) cavern has accounted for fully subscribed right issue of equity shares made on 1 april 2010 of one new share of every four share in issue at 42 cents each
equity share of 50 cents each fully paid 60000
suspense account note 4 24000
(4)the suspense account contains the corresponding entry for the proceeds of right issue of share made on 1 july 2007.the term of the issue were one share for every four held at 80 cents per share.
1 for 4 is common in both questions
but it is solved differently
cavern solution llama solution
my question is why are we taking 1 by 4 in llama.it should be 1by 5 because if a person has four shares before issue so after issue he should have five like shown in cavern.
sir tell me what I am misunderstanding in this?
I’ve just answered this – please do not duplicate your questions
sorry sir it was because of my browser which didnt work properly.i ve changed my browser.
Ok, no harm done – but I do find it frustrating when I’ve answered a question then to find that the next one is the same question!