Accounting Multiple Choice Question – 27 July 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A company with an issued share capital of £200 000 of £1.00 ordinary shares makes a bonus issue of one £1.00 ordinary share for every five already held.

It also issues £80 000 debentures at a discount of 5%.

The company has a bank balance of £40 000 before the issues.

What is the bank balance after the issues?

Select ONE answer:

  1. £76 000
  2. £116 000
  3. £120 000
  4. £166 000

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 ==> £40,000 + £80,000 * 0.95
  3. Not correct
  4. Not correct

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