Q4. The businesses are continued and survived in the market based on their vision, mission and how they maintain the capital structure. One of the finance factor is issue of shares to the shareholders. So, as a part of this the company will do Rights issue and issue bonus shares to shareholders as per the requirements. These will make a huge impact in terms of business development and performance. It includes various reasons during the course of business. (5 Marks)

By considering the above points, create a scenario related to Rights issue and Bonus issue of shares with your own information. Along with the data, you are required to show the following information.

1. Workings with journal entries of rights issue and bonus issue of shares.
2. Calculate and show the theoretical ex rights price.
3. Show the abstract of SFOP, wherever necessary (equity part only).