ACCA F3 Mock Exam Capital Structure
At 31 December 2004 a company’s capital structure was as follows:
Ordinary share capital $(400,000 shares of 25c each) $100,000.
Share premium account $300,000.
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 | 400,000 | 100,000 | 300,000 |
| Right Issue of 1 share for every 2 held at $1 | 200,000 | 50,000 | 150,000 |
| Total | 600,000 | 150,000 | 450,000 |
| Bonus issue of 1 share for every 5 held | 120,000 | 30,000 | -30,000 |
| Answer | 180,000 | 420,000 |
To do the same topic again in ACCA F3 Mock Exam Capital Structure
To do another topic in ACCA F3