Journal entries

flower

Thought I understood journals but if anyone could help with DFS Dec 10.
Cannot see where the 6,000 entry comes from for Cash and Cash equivalents.
Also the Share Capital and Share Premium figures.
Thanks

PGM

I can help if I can see the question

Woooof

flower wrote: »

Thought I understood journals but if anyone could help with DFS Dec 10.
Cannot see where the 6,000 entry comes from for Cash and Cash equivalents.
Also the Share Capital and Share Premium figures.
Thanks

It's in the additional data... in patricular this part:

"At the beginning of the year the issued share capital was 10,000,000 ordinary shares. At the end of the year another 2,000,000 ordinary shares were issued at a price of £3.00 per share. Due to a misunderstanding about the date of the share issue, this has not been accounted for in the ledger accounts in the trial balance. The shares were fully paid."

So you have £6,000,000 as cash and cash equivalents (money received from issue of shares)

"The share capital of the company consists of ordinary shares with a nominal value of £1."

So the extra issued during the year go as "Share capital", but only at nominal value and the extra gained goes as "Share premium" (The amount paid over the nominal value of shares)

Hope this helps

flower

Thanks for that.