Tammy Plc has made a rights issue of 2 million new ordinary shares for cash. Each ordinary share of the company has a par value of 50 pence. The current share price is 450 pence and the rights issue price is 320 pence. What is the correct double entry required to record this transaction in the company's books of account?
A) Debit cash £1,000,000
B) Debit cash £6,400,000
C) Debit cash £7,400,000
D) Debit cash £9,000,000
Correct Answer:
Verified
Q1: Ronaldo Limited wishes to raise £1,200,000 in
Q2: Aemilia Limited issues 350,000 ordinary shares of
Q3: Which one of the following represents the
Q4: Timmy Plc is making a bonus issue
Q5: Livia Plc makes a bonus issue of
Q6: Rights issues are made at a discount
Q8: Frannie Plc has made a rights issue
Q9: Amie Plc's rights issue raises cash of
Q10: At 1 November 2018, Forum Limited's retained
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents