Shares in FS

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If a company issues 1,000,000 ordinary £1 shares at a price of £1.50, and recognise the proceeds as a credit to revenue. Then how much should be recognised in revenue, and how is the change in shares reflected in the SOCE?

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  • RebeccaSmith
    RebeccaSmith Registered Posts: 2 New contributor 🐸
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    I have just had a similar question in my exam and wondered how this needed to be reflected in the SoP&L, SOCE & then in the SoFP. Did you ever find out an answer to this or can anyone else help? My SoFP wouldnt balance and I wasn't sure if revenue needed reducing (effecting retained earning in FP) or if cash and CE needed increasing. Does anyone know what the correct answer is?



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