The ‘share capital and reserves’ section of Salamanca Ltd’s statement of financialposition at 31 May 2014 (see Activity 6.3 above) was as follows:
| £ | £ | |
| Equity | ||
| Share capital | 100,000 | |
| Share premium | 140,000 | |
| Retained earnings: | ||
| Balance at 1 June 2013 | 209,000 | |
| Retained profit for the year | \underline{44,200} | |
| \underline{253,200} | ||
| Total equity | \underline{493,200} | |
Assume that on 1 June 2014 a rights issue on a ‘3 for 5’ basis was made at 80p per share. All the existing shareholders decided to take up their shares, and paid for them in full by 30 June 2014. Six months later, the company made a bonus issue on a ‘2 for 1’ basis, the issue being paid up equally from the share premium and the retaine earnings. Assume these are the only changes to equity which have been made in the period.
Show the revised ‘Equity’ section after the rights issue and after the bonus issue.
