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Ans
Ans
Ordinary shares outstanding = Ordinary Shares (at par) / par value per share
Ordinary shares outstanding = 1,513,000 / 250
Ordinary shares outstanding = 6,052
Ordinary shares subscribed = Subscribed ordinary shares / par value per share
Ordinary shares subscribed = 80,000 / P250
Ordinary shares subscribed = 320
Third step: Compute the average price has ordinary shares been subscribed or issued.
Average price = (Ordinary shares + subscribed ordinary shares + share premium - ordinary) ÷
(Ordinary shares outstanding + ordinary shares subscribed)
Average price = (1,513,000 + 80,000 + 60,000) ÷ (6,052 + 320)
Average price = 1,653,000 ÷ 6,372
Average price = P259.42
Note that we must add the value of outstanding, subscribed, and premium shares. The excess of
par of both outstanding and subscribed shares is recorded in the share premium.
71. First step: Compute the the subscription price per share
of the ordinary shares subscribed.