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share issues question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › share issues question

  • This topic has 0 replies, 1 voice, and was last updated 13 years ago by drewjusloveable.
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  • June 11, 2012 at 2:48 pm #53328
    drewjusloveable
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    How do you work this question ON share capital (company accounts)?

    Ordinary share $1 each $100
    Share premium $80

    DURING THE YEAR END 30 June the following transactions took place.
    1 Sept 2005 a bonus issue of 1 ordinary share for every 2 held, using the share premium account

    1 Jan 2006 a fully subscribed rights issue of 2 ordinary shares for every 5 held at that date, at 1.50 per share.

    What should the balances be on each account at 30 June 2006?

    Share capital share premium account
    210 110
    210 60
    240 90
    240 80

    PLEASE SHOW THE WORKING. THANK YOU

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