Hi, For part i) why hasn't the share capital been included in the balance sheet? Are the solutions just including this figure in the free reserves?
Hi B_actuary Share capital is the funds raised by issuing shares. But these funds won't just have been floating around in space, the company will have done something with them, eg either by holding them as cash (current assets) or as other investments. Therefore, we can't include share capital in our balance sheet because this would be double counting. Kind regards, Katherine.
