A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2020 · Q151 Mark
A company issued 100000 ordinary shares of $1 each at a premium of $2. The market value was $4 per share. Which statement is not correct?
ACapital reserves increased by $200000.
BCash and cash equivalents increased by $300 000.
COrdinary share capital increased by $100000.
DRevenue reserves increased by $400 000.
✓ Correct answer
D: Revenue reserves increased by $400 000.
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