A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2018 · Q131 Mark

A company issues 50000 ordinary shares of $5 each at a premium of $15. It also issues a 4% debenture, $300000. By which amount do the net assets of the company increase?

A$250 000

B$550000

C$1000000

D$1300000

✓ Correct answer

C: $1000000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2018 Paper 1 Variant 2, question 13.

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