3. Answer all parts of this question

(a) What are contingent liabilities and how are they accounted for?

(b) You are given the following information in relation to High-jump Ltd:

Required

Define and calculate the price earnings ratio for High-jump Ltd.

(c) Identify three types of joint venture and discuss how joint ventures are accounted for.

(d) On 1 July 2016, Hockey Ltd issued an additional 4 million ordinary shares with nominal value of 50p for £12.50 per share. The costs of this share issue totalled 1% of the total money raised in the share issue. After this share issue, Hockey Ltd issued bonus shares, in respect of all its shares, on a 1 for 5 basis. Before the share issue and the bonus issue Hockey Ltd’s share capital and reserves were as follows:

                                                                    £

Ordinary share capital                 5,000,000

Ordinary share premium           15,000,000

Preference share capital             4,000,000

Retained earnings                        160,000,000 

Required

Show how Hockey Ltd’s share capital and reserves would be affected by the share issues outlined above.