Question: Question 2: The tasks are listed below: (Total 10 marks) The summarized statement of financial position of Cloud Ltd at a particular point of time

Question 2: The tasks are listed below: (Total 10 marks)

The summarized statement of financial position of Cloud Ltd at a particular point of time is as follows,

Statement of the Financial Position

Particulars Amount in Omani Rial (OMR)

Particulars	Amount in Omani Rial (OMR)
Net Assets Value (Various assets less Liabilities)	857,500

Equity
Share Capital (200,000 shares of OMR 1 each)	250,000
Share premium account	75,000
Revaluation Reserve	92,500
Retained Earnings	170,000
Total Equity	587,500

Transaction

Without any other transactions occurring at the same time, the company made a one for five rights share issue at OMR 3.75 per share payable in cash. All shareholders took up their rights. Immediately afterwards, the company made a one for two bonus issue.

You are required to do the following things:

Define Right Issue and Bonus Issue. How these issues are different from Public Issue. (Marks 2)
Show the statement of financial position immediately following the bonus issue, assuming that the directors wanted to retain the maximum dividend payment potential for the future. (Marks 4)

Ahmed has 250 equity shares of the aforesaid company before Right and Bonus issue. Now what will be total shareholding of Ahmed after bonus and right issues? What is the total value of Ahmeds share before and post right and bonus issue? (Marks 4)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question 2: The tasks are listed below: (Total 8 marks) The summarized statement of financial position of Amal Inc. at a particular point of time is as follows, Statement of the Financial Position...

(LOI & LO2) Question 1: The tasks are listed below: (Total 18 marks) Saif and Salim started partnership business in 2015 sharing profit and losses in the ratio of 60% and 40% respectively. The...

(1.01 & L02) Question 1: The tasks are listed below: (Total 18 marks) Saif and Salim started partnership business in 2015 haring profit and losses in the ratio of 60% and 40% respectively. The...

Question 1: The tasks are listed below: (Total 20 marks) Ahmed and Mohammed started partnership business in 2015 sharing profit and losses in the ratio of 60% and 40% respectively. The following is...

You are a newly appointed auditor of Otjomuise Ltd and have been presented with this statement of financial position. Otjomuise Ltd Statement of financial position as at 30 September 2018 N$ 2018...

please i need an expert for this. need full answers best results. Question 3 ( 30 marks) You are a newly appointed auditor of Otjomuise Ltd and have been presented with this statement of financial...

Financial accounting 1B. clear full answers. Question 3 ( 30 marks) You are a newly appointed auditor of Otjomuise Ltd and have been presented with this statement of financial position. Otjomuise Ltd...

I need the answers today,, its due today please Question 3 ( 30 marks) You are a newly appointed auditor of Otjomuise Ltd and have been presented with this statement of financial position Otjomuise...

answer the two questions Question 3 ( 30 marks) You are a newly appointed auditor of Otjomuise Ltd and have been presented with this statement of financial position. Otjomuise Ltd Statement of...

You are a newly appointed auditor of Otjomuise Ltd and have been presented with this statement of financial position. Otjomuise Ltd Statement of financial position as at 30 September 2018 N$ 2018...

Cutting forces should be kept constant during machining operations to prevent changes in spindle speeds or work position. Such changes would deteriorate the accuracy of the work's dimensions. A...

Drude theory of AC transport. The Drude theory can be extended to study the response of a metal to a time-dependent electric field E(t) = Ewe-it. From this we can understand why a metal is shiny, and...

x ^ 5 - x ^ 4 - 5 x ^ 3 = 0

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

9-16 How did WIM manage the change from a local MRP system to Epicors ERP system? Welding Industries Malaysia (WIM) is the only local Malasian company that manufactures welding machines for...

9-15 How has Epicors ERP system helped WIM to make its production process more efficient? Welding Industries Malaysia (WIM) is the only local Malasian company that manufactures welding machines for...

9-12 In MyMISLab, you will find a Collaboration and Teamwork Project dealing with the concepts in this chapter. You will be able to use Google Drive, Google Docs, Google Sites, Google+, or other...