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.