A-LevelAccountingPreparation of financial statements9706/12 · May/June 2011 · Q91 Mark
An extract from Bumble Ltd's balance sheet shows the following. $000 ordinary shares of $0.25 each 500 share premium 100 retained earnings 300 The company makes a rights issue of 1 share for each 4 held at a price of $0.30 per share. All shares are taken up. What will the new balance sheet show?
Aordinary shares of $0.25 each 625, rights issue -, share premium 100, retained earnings 300
Bordinary shares of $0.25 each 500, rights issue 125, share premium 125, retained earnings 275
Cordinary shares of $0.25 each 625, rights issue -, share premium 125, retained earnings 300
Dordinary shares of $0.25 each 625, rights issue -, share premium 100, retained earnings 325
✓ Correct answer
C: ordinary shares of $0.25 each 625, rights issue -, share premium 125, retained earnings 300
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