ACCA F3 Mock Exam Capital Structure
At 31 December 2004 a company’s capital structure was as follows:
Ordinary share capital $(500,000 shares of 25c each) $125,000.
Share premium account $600,000.
In the year ended 31 December 2005 the company made a rights issue of 1 share for every 2 held at $1 per share and this was taken up in full. Later in the year the ompany made a bonus issue of 1 share for every 5 held, using the share premium account for the purpose.
What was the company’s capital structure at 31 December 2005?
(Ordinary share capital and Share premium account)
Suggested Solution::
| Par Value 25c Each | No of Shares | Ordinary Shares | Share Premium |
| Info Given | 500,000 | 125,000 | 600,000 |
| Right Issue of 1 share for every 2 held at $1 | 250,000 | 62,500 | 187,500 |
| Total | 750,000 | 187,500 | 787,500 |
| Bonus issue of 1 share for every 5 held | 150,000 | 37,500 | -37,500 |
| Answer | 225,000 | 750,000 |
To do the same topic again in ACCA F3 Mock Exam Capital Structure
To do another topic in ACCA F3