At 31 December 20X4 a companys capital structure was as follows: $ Ordinary share capital 125,000 (500,000
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Question:
At 31 December 20X4 a companys capital structure was as follows:
$
Ordinary share capital 125,000
(500,000 shares of 25c each)
Share premium account 100,000
In the year ended 31 December 20X5 the company made a rights issue of 1 share for every 2 held at $1 per share
and this was taken up in full. Later in the year the company made a bonus issue of 1 share for every 5 held, using
the share premium account for the purpose.
What was the companys capital structure at 31 December 20X5?
Ordinary share capital Share premium account
A $450,000 $25,000
B $225,000 $250,000
C $225,000 $325,000
D $212,500 $262,500
Posted Date: