A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2019 · Q171 Mark

A company has ordinary share capital of $250000. The ordinary shares have a nominal value of $0.25 each. A rights issue is made on the basis of 2 shares for every 5 shares held at a premium of $0.15. What is the total amount of capital raised from the rights issue of shares?

A$15000

B$40 000

C$60000

D$160000

✓ Correct answer

D: $160000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2019 Paper 1 Variant 2, question 17.

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