A-LevelAccountingPreparation of financial statements9706/12 · May/June 2022 · Q191 Mark
On 1 January, X Limited had share capital of 100000 ordinary shares which had been issued at their par value of $1 each. There was no share premium account. On 1 March, a bonus issue of one new ordinary share for every five ordinary shares held was made from retained earnings. On 1 June, the company made a rights issue of one new ordinary share for every four ordinary shares held at a price of $1.50 each. All the rights were taken up. How much was recorded in the share premium account?
A$12500
B$15000
C$30000
D$45000
✓ Correct answer
B: $15000
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