could someone please explain how they got 150.000. I thought it should be like 125,000(1.10-0.50), but it gives different answer. and if I got it right, they got 125,000 by (100000+150,000)*0.5. thanks in advance

7.6.1 Sample exa 7.1 Sammels Ltd At 1.1.X2, the equity of Sammels Ltd was as follow 100,000 Share capital: 200,000 shares of 50p each Share premium 80,000 20,000 Revaluation reserve 450,000 Retained profits 650,000 Total equity The following events occurred: 1. On 31.7.X2 an ordinary dividend was paid of 60,000. 2. On 31.8.X2 a 3 for 2 bonus issue was arranged. On 30.9.X2 a 1 for 2 rights issue took place, all shares being subscribed 3. for 1.10 each. 4. Profits for the year 20X2 were 85,000. 5. A proposed dividends of 70,000 will be voted on by the shareholders and should be paid to them on 31.3.X3. 6. A revaluation of property from 500,000 to 800,000. Required Show the statement of movements in equity in the 20X2 accounts of the company. 100,000 450,000 650,000 80,000 20,000 (60,000) (60,000) (50,000) 150,000 (80,000) (20,000) 275,000 125,000 150,000 85,000 85,000 300,00C 300,000 425,000 1,250,000 300,000 375,000 150,000 Sample examination paper 7.1 Sammels Ltd Statement of changes in equity: Share Share Revaluation capital(50p) premium Retained Total for the y/e 31.12.X2 reserve Profits at 1.1.X2 000'07 450,000 650,000 31.7.X2: dividend paid 31.8.X2: 3 for 2 bonus issue 30.9.X2: 1 for 2 rights issue at 1.10 (000'09) (000'09) (000'0s) 31.12.X2: profits for the year 85,000 000s 300,000 31.12.X2: revaluation 300,000 at 31.12.X2: closing balances 375,000 150,000 300,000 425,000 1,250,000