A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2016 · Q181 Mark

A company issues one million ordinary shares of $1 each at $1.30 per share. It also issues a debenture for $500000. What is the increase in the equity of the company?

A$1000 000

B$1300000

C$1500000

D$1800000

✓ Correct answer

B: $1300000

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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 18.

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