The statement of financial position of a company at 31 December showed the following:

issued share capital: $200 000
200 000 ordinary shares at $1 per share

During the following year, the company carried out the following:

1 On 1 January made a rights issue of one ordinary share for every five ordinary shares held. The share issue price was $1.50 per ordinary share and the issue was fully subscribed.
2 On 1 July made a bonus issue of one ordinary share for every four ordinary shares held at that date.

What was the amount of cash received by the company in respect of these transactions?

Q: What topic does this question test?

This question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2024 examination, Paper 1 Variant 2 (9706_w24_qp_12.pdf).

Question

The statement of financial position of a company at 31 December showed the following:

issued share capital: $200 000
200 000 ordinary shares at $1 per share

During the following year, the company carried out the following:

1 On 1 January made a rights issue of one ordinary share for every five ordinary shares held. The share issue price was $1.50 per ordinary share and the issue was fully subscribed.
2 On 1 July made a bonus issue of one ordinary share for every four ordinary shares held at that date.

What was the amount of cash received by the company in respect of these transactions?

Oracle Prep · Accepted Answer

The correct answer is B: $60.000.

✓ Correct Answer

📋 Examiner Report & Trap Analysis

🎯 Mark Scheme Breakdown

Unlock the Examiner's Analysis

About This A-Level Accounting Question

Topic

Source

Practice on Oracle Prep

Related Accounting Questions