A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2020 · Q161 Mark

Which statement about bonus shares is correct?

AThey may be issued as repayment of debentures.

BThey may be issued at a premium.

CThey may be issued to the holders of preference shares.

DThey may be issued using the share premium account.

✓ Correct answer

D: They may be issued using the share premium account.

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 16.

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