B12.3 [S] The following is a summarised statement of financial position (balance sheet) of Nithsdale Ltd. The

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B12.3 [S]

The following is a summarised statement of financial position (balance sheet) of Nithsdale Ltd.

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The company is considering three possible changes to its capital structure:

(a) issue for cash 50,000 additional ordinary shares at £1 per share, fully paid; or

(b) make a 1 for 4 capitalisation issue of ordinary shares; or

(c) make a 1 for 5 rights issue at £3 per share.

Show separately the impact of each change on the statement of financial position (balance sheet) of the company.

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Financial Accounting An Introduction

ISBN: 9780273718406

5th Edition

Authors: Pauline Weetman

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Question Posted: Sep 14, 2024 04:30 AM

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B12.3 [S] The following is a summarised statement of financial position (balance sheet) of Nithsdale Ltd. The

Question:

000s Cash 20 Other assets less liabilities 320 340 Ordinary shares (400,000 of 25 pence each) 100 Share premium 40 Reserves of retained profit 200 340

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Financial Accounting An Introduction

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