A-LevelAccountingPreparation of financial statements9706/12 · May/June 2020 · Q161 Mark
On 1 December 2019 a company's statement of financial position included the following. [Table with 'ordinary shares of $5 each' $2500000, 'share premium' $850000, 'retained earnings' $710000] 2019 15 December paid an ordinary share interim dividend of $0.15 per share 23 December made a bonus issue of 25000 ordinary shares Reserves were kept in their most flexible form. What were the balances on the revenue reserves and capital reserves accounts after these transactions?
Arevenue reserves $335000, capital reserves $725000
Brevenue reserves $335000, capital reserves $825000
Crevenue reserves $635000, capital reserves $725000
Drevenue reserves $635000, capital reserves $825000
✓ Correct answer
C: revenue reserves $635000, capital reserves $725000
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