Alex plc has share capital of 300,000 £1 (face value) shares as at 1 March 223. These 300,000 shares were issued at a price of £1.50
per share.
On 28 February 2024 Alex pic made a 2 for 3 bonus issue.
Before accounting for this the balance on the retained earnings reserve as at 28 February 2024 was £717,000.
In its statement of financial position as at 28 February 2024 the balance on Alex plc’s retained earnings reserve will be?
Select ONE answer:
- £517,000
- £567,000
- £667,000
- £717,000
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 3
- Not correct
- Not correct
- Correct – £717,000 – £50k (balance of Bonus issue of £200,000, remaining £150K taken from share reserve).
- Not correct
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