Fuho plc had share capital of 2.4 million 50p equity shares when it made a...
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Fuho plc had share capital of 2.4 million 50p equity shares when it made a 1 for 6 rights issue at 2.20 per share on 1 September 20X2 which was fully taken up.Only $704.000 has been received from shareholders for the nights issue at the end of its reporting period, 30 September 20X2, and this has been accounted for correctly in the cash at bank account and posted to a suspense account.
The journal adjustment to clear the suspense account should debit suspense with 704,000 and
A. Debit Other receivables 176,000; Credit Share capital 200,000; Credit Share premium 680.000
B. Credit Share capital 400,000, Credit Share premium 304,000
C. Debit Other receivables 176,000; Credit Share capital 400,000; Credit Share premium 480,000
D. Credit Share capital 200,000: Credit Share premium 504,000
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