A-LevelAccountingPreparation of financial statements9706/12 · May/June 2016 · Q181 Mark
The trial balance on 31 December 2015 showed the following information. ordinary share capital ($1 shares) $500000 retained earnings $300000 On 1 January 2016 the directors created the general reserve of $70000. At the same time 200000 ordinary shares were issued for $300000. By which amount did the total reserves increase on 1 January 2016?
A$100000
B$170000
C$300000
D$370000
✓ Correct answer
A: $100000
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