Where is cash + cash eqv coming from please?

topcat

Hello ,

I can see the 423 but not sure where the £9000 is coming which is the answer to total cash + cash eqv as £9423 in sofp

Does anyone know please here is the info :

welshwizard

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.

topcat

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

Thanks

topcat

ah bank is cash and cash eqv !

Man i am slow haha

thanks again