A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2014 · Q161 Mark

A company issues 1000000 ordinary shares of $1 each at a premium of 20%. Which value will be shown for ordinary shares in the statement of financial position?

A$200000

B$800000

C$1000000

D$1200000

✓ 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, Oct/Nov 2014 Paper 1 Variant 2, question 16.

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