The table sets out a company’s capital. ordinary shares of $1.00 each: $200 000 share premium account: $80 000 revenue reserves: $160 000 The following changes then have to be carried out (in the order shown): • a one-for-one bonus issue • a rights issue of 100 000 ordinary shares of $1.00 each at $1.40 per share The company wants to keep the amount available for dividend payments as high as possible. What will the company’s ordinary share capital, share premium and revenue reserves be?
Accounting 9706 · AS & A Level · The accounting system