A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2016 · Q171 Mark

A limited company intends to issue shares at a price above the nominal value. Which items, apart from bank balance, will be affected by the share issue?

Ashare capital, capital reserves and revenue reserves

Bshare capital and capital reserves only

Cshare capital and revenue reserves only

Dshare capital only

✓ Correct answer

B: share capital and capital reserves only

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2016 Paper 1 Variant 2, question 17.

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