Day: November 9, 2021

A company’s Balance Sheet shows the following balances:

• ordinary shares of £1 each  —  £100 000
• share premium  —  £10 000
• Profit and Loss    —  £48 000
• bank balance  —  £50 000

A 1 for 4 bonus issue takes place, leaving the reserves in the most useful form. What are the new account balances?

Select ONE answer:

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 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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