A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2025 · Q181 Mark
A company had an issued share capital of 400000 ordinary shares of $1 each. It then made a bonus issue of one ordinary share for every five ordinary shares held. This was later followed by a rights issue of one ordinary share for every three ordinary shares held. What was the balance on the share capital account after these transactions?
A$480 000
B$533333
C$613333
D$640 000
✓ Correct answer
D: $640 000
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