Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bank ? Share Capital ? Share Permium ? Revaluation Reserve ? Retained Profit ? On that day the company made a 7 for 4 bonus

Bank ?
Share Capital ?
Share Permium ?
Revaluation Reserve ?
Retained Profit ?
image text in transcribed
image text in transcribed
image text in transcribed
On that day the company made a 7 for 4 bonus issue. The directors wish to avoid cap talising prohita it they can manage it. After this transaction. Which of the below reflects the correct balance in these accounts in the statement of financial position? Select one answer: Select one answer: \begin{tabular}{|l|r|} \hline Bank & \multicolumn{1}{|c|}{F} \\ \hline Share capital: & 165,000 \\ \hline Share premium & 50,000 \\ \hline Revaluation reserve & 44.000 \\ \hline Retained profits & 57,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Bank & \\ \hline Share capital: & (25,000) \\ \hline Share premium & 165,000 \\ \hline Revaluation reserve & \\ \hline Retained profits & 79,000 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions