A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2011 · Q191 Mark
What occurs in a rights issue of shares?
AAny premium on the issue is added to a capital reserve.
BAny premium on the issue is added to a revenue reserve.
CAny premium on the issue is written off to the income statement.
DThe nominal value of the issue is written off to the income statement.
✓ Correct answer
A: Any premium on the issue is added to a capital reserve.
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