ACCA F3 Capital Structure
L co, a limited liability company has the following capital structure:
| Share Capital | $'000 |
| 50c Ordinary Shares | 90,000 |
| Share Premium | 300,000 |
| 390,000 |
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 | 180,000 | 90,000 |
| Bonus 2 for 3 | 120,000 | 60,000 | |
| Total | 300,000 | 150,000 |
| Share Premium | $'000 |
| Original | 300,000 |
| Less Bonus 2 for 3 | (60,000) |
| New Premium | 240,000 |
To do the same topic again in ACCA F3 Capital Structure
To do another topic in ACCA F3