A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2021 · Q161 Mark
A company's statement of financial position at 1 January 2020 included the following amounts. $Ordinary shares of $5 each: 800 000 General reserve: 80 000 Retained earnings: 120 000 The following transactions took place during the year ended 31 December 2020. 1 The company issued a further 50000 ordinary shares at a premium of $1 per share. 2 The company's land was revalued upwards by $130 000. 3 The company paid a final dividend of $60000. What were the total revenue reserves and capital reserves at 31 December 2020 after these three transactions?
A140000 (revenue), 180 000 (capital)
B190000 (revenue), 130000 (capital)
C200 000 (revenue), 180 000 (capital)
D250 000 (revenue), 130000 (capital)
✓ Correct answer
A: 140000 (revenue), 180 000 (capital)
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