Shares

    Cards (14)

    • What is share capital issued at?
      Nominal value
    • How are premium shares defined?
      Market value above nominal value
    • If a share has a nominal value of 100100 and a market value of 120120, what is the premium?

      2020
    • What is the accounting entry for share capital when issued at nominal value?
      Bank DR-Asset, Share Capital CR-Income
    • What are bonus shares also known as?
      Bonds shares
    • How are bonus shares distributed to existing shareholders?
      In proportion to existing shares
    • What happens to share premium when bonus shares are issued?
      It moves to share capital
    • If a company has 100,000100,000 in share capital and issues bonus shares at a ratio of 2 for every share held, what is the new share capital?

      50,00050,000
    • What is the purpose of a rights issue?
      Raising additional funds
    • What is the entry for share premium when issuing bonus shares?
      Share Premium CR
    • If a company has 200,000200,000 in share premium and issues bonus shares, what is the share premium entry?

      100,000100,000
    • How does the issuance of bonus shares affect the total equity of a company?
      Total equity remains unchanged
    • What are the key features of premium shares and bonus shares?
      • Premium shares: Market value above nominal value
      • Bonus shares: Free shares issued to existing shareholders
      • Both affect share capital and premium accounts
    • What are the accounting entries for issuing shares and bonus shares?
      • Issuing shares:
      • Bank DR-Asset
      • Share Capital CR-Income
      • Issuing bonus shares:
      • Share Premium CR
      • Share Capital CR
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