A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2010 · Q201 Mark
A company's share capital and reserves are: [Table showing non current (fixed) assets $250 000, net current assets $125 000, total $375 000; and share capital and reserves breakdown: 150 000 shares $1 each $150 000, share premium $75 000, general reserve $125 000, profits retained $25 000, total $375 000] The directors propose to issue bonus shares on the basis of one $1 share for every three already held. Following this the directors intend to make a rights issue on the basis of one new $1 share for every four shares held, at a premium of $0.20 per share. What will the total net assets of the company be after the share issues?
A$425 000
B$435 000
C$475 000
D$485 000
✓ Correct answer
B: $435 000
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