I have a question here that says:
"A company was created with authorised share capital of £110,000. The share capital is made up of 70,000 ordinary shares and 40,000 3% preference shares."
I'm supposed to draw up a statement of financial position (balance sheet) and I have now idea what this means.
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A small question on share capital and preference shares? watch
- Thread Starter
- 28-11-2011 22:30
- 01-12-2011 16:53
ok from what i can understand you have to do a balance sheet extract of the equity (capital and reserves section)
authorised share capital is the Maximum amount the company can issue. normally this is shown as a note to the balance sheet.
which textbook are u using?