Accounting Multiple Choice Question – 27 August 2021

A Balance Sheet extract shows: 

All the loan stock is to be converted to ordinary shares in the proportion of £1 loan stock to 1 new ordinary share. 

After the conversion, what will be the net asset value per share?

Select ONE answer:

1. £0.80
2. £0.90
3. £1.00
4. £1.30

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct ==> (£1,000 + £400) / £1,400 / £1,800 – £540 + (140 * 2)
3. Not correct
4. Not correct

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