A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2025 · Q171 Mark
A company uses a revenue reserve to make a bonus issue of ordinary shares. Which accounts should be debited and credited to record this?
Aaccount debited: general reserve, account credited: share capital
Baccount debited: share capital, account credited: general reserve
Caccount debited: share capital, account credited: retained earnings
Daccount debited: share premium, account credited: share capital
✓ Correct answer
A: account debited: general reserve, account credited: share capital
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