SBP Limited has share capital of 50 000 shares of 25p each, all of which have been issued to shareholders in exchange for cash.A dividend of 2p per share has been declared and is due for payment.What is the amount of share capital to be included in SBP's statement of financial position?

Question

Quizplus · Accepted Answer

The share capital is calculated as the number of shares multiplied by the nominal value per share. Therefore, 50,000 shares * 25p = £12,500. Dividends do not affect the share capital amount.

SBP Limited Has Share Capital of 50 000 Shares of 25p