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a) The term reserves is frequently found in company balance sheets. (i) Explain the meaning of reserves in this context; (ii) Give two examples of

a) The term reserves is frequently found in company balance sheets. (i) Explain the meaning of reserves in this context; (ii) Give two examples of reserves and explain how each of your examples comes into existence. b) A companys issued share capital may be increased by a bonus (capitalization) issue or by a rights issue. Define bonus issue and rights issue and explain the fundamental difference between these two types of share issue

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