ACCA F3 Capital Structure
L co, a limited liability company has the following capital structure:
| Share Capital | $'000 |
| 50c Ordinary Shares | 180,000 |
| Share Premium | 360,000 |
| 540,000 |
The company made a bonus issue of 2 shares for every 3 shares held using the share premium account for the purpose.
What was the company’s capital structure after the bonus shares?
(Ordinary share capital and Share premium account)
Suggested Solution:
| Share Capital | No of shares at 50c | $'000 | |
| Original | 50c Ordinary Shares | 360,000 | 180,000 |
| Bonus 2 for 3 | 240,000 | 120,000 | |
| Total | 600,000 | 300,000 |
| Share Premium | $'000 |
| Original | 360,000 |
| Less Bonus 2 for 3 | (120,000) |
| New Premium | 240,000 |
To do the same topic again in ACCA F3 Capital Structure
To do another topic in ACCA F3