Question
The company has preference share capital with 10,000 issued shares at P100 par and ordinary share capital with 100,000 issued shares at P30 stated value.
The company has preference share capital with 10,000 issued shares at P100 par and ordinary share capital with 100,000 issued shares at P30 stated value. all preference shares were issued at P150 per share while the ordinary shares were issued at P50 per share. Assuming: half of preference shares were converted into ordinary shares with the ratio of 1 PS for 6 OS. how much should be debited to preference share premium and retained earnings in relation to conversion?
a. preference share premium-250,000
retained earnings-150,000
b. preference share premium-100,000
retained earnings-250,000
c. preference share premium-250,000
retained earnings-750,000
d. preference share premium-250,000
retained earnings-250,000
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Auditing And Assurance Services With ACL CD
Authors: McGraw Hill
1st Edition
1259071200, 978-1259071201
