Where is cash + cash eqv coming from please?
topcat
Registered Posts: 452
Comments
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RTFQ (Read The Full Question)!
The share capital has increased from the £7,000,000 at the start fo the year (after the initial issue of shares) to account for the further share issue at £3.00 per share: 3,000,000 further shares are issued at £3 each so 3,000,000 x £3.00 = £9,000,000.
The £3 per share is made up of:
£1 ordinary share capital (nominal value)
£2 share premium (amount above the nominal value)
Debit Bank £9,000,0000
Credit Share Capital £3,000,000 (3,000,000 x £1 ordinary share price)
Credit Share Premium £6,000,000 (3,000,000 x £2 share premium)
I hope this helps.0 -
welshwizard wrote: »RTFQ (Read The Full Question)!
The share capital has increased from the £7,000,000 at the start fo the year (after the initial issue of shares) to account for the further share issue at £3.00 per share: 3,000,000 further shares are issued at £3 each so 3,000,000 x £3.00 = £9,000,000.
The £3 per share is made up of:
£1 ordinary share capital (nominal value)
£2 share premium (amount above the nominal value)
Debit Bank £9,000,0000
Credit Share Capital £3,000,000 (3,000,000 x £1 ordinary share price)
Credit Share Premium £6,000,000 (3,000,000 x £2 share premium)
I hope this helps.
Thanks Welshwizzard !
i did suspect it was something to do with this but then decided it was not as it is capital not cash
So do share issues count as cash and cash eqv? that has really stumped me now
Thanks0 -
ah bank is cash and cash eqv !
Man i am slow haha
thanks again0
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