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A small question on share capital and preference shares? watch

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    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.

    Any help?
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    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?
 
 
 

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