A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2019 · Q171 Mark
The directors of a limited company recently made a rights issue of one ordinary share for every three held at a premium of $0.50 per share. The rights issue was fully subscribed. The statement of financial position showed the following information after the rights issue was made. $000 issued share capital: (shares of $1 each) 1200 share premium 300 Which amount was debited to the company's bank account when the rights issue was made?
A$300 000
B$400 000
C$450 000
D$600 000
✓ Correct answer
C: $450 000
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