Capital section of the balance sheet

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Gamma plc has issued share capital of £1,000,000, nominal value of ordinary shares is £2 and accumulated profits of £456,000 as at 31.12.X6. The company proposes to make a rights issue of 2 for 5 existing shares held at a price of £4.25 and a bonus issue of 200,000 ordinary shares. The market value of the shares as at 31.12.X5 is £6.70. Show the capital section of the balance sheet after the two share issues and also identify how many shares a holder of 1,000 shares before the issues will have afterwards.

Reference no: EM13954734

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