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The financial statements of a company shows the following.I am an Accounts teacher and open to your queries. I will try my best to answer each one of you.
$
ordinary shares of $1 each 1 200 000
share premium 100 000
retained earnings 150 000
10% debenture 150 000
The directors of the company carry out the following actions.
issue 50 000 ordinary shares of 1eachatapremiumof0.20
repay $100 000 of the debenture at a premium of 20%
What is the equity of the company after these transactions have taken place?
A 1490000B1 500 000 C 1510000D1 540 000
Ans is A sir....How?