A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2023 · Q181 Mark

A limited company intends to issue shares at a price above the par value. Which items, apart from the 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 2023 Paper 1 Variant 2, question 18.

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