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On 1st april 2012 the shares were 80 million and 1st july 2012 1 to 4 rights issue was subscribed in full so the total shares for the ended 31st march 2013 became 100 million in total.
Well we have to separate the shares before the issue and after the issue,so we can prepare the statement of changes in equity.Now we have 100 million shares to begin with.Now after looking at the trial balance in question i just know we have 100 million shares and a 1/4 rights issue was taken place and i have to find out how many shares we had on 1st april 2012.
I dont know where to begin and this is giving me a hard time.4 + 1 = 5
Multiplying throughout by 20, gives us
80 + 20 = 100
Start + issue = finish
In numbers that’s:
Start + 20 = 100
Or:
Finish – issue = start
In numbers:
100 – 20 = start
We know finish is 100 and we know issue is 20
Therefore start must be 80
(You’ve actually written out the answer in your post “On 1st april 2012 the shares were 80 million” or was that for my benefit?)
Is that better for you?
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