Question
The equity of Duffy Ltd at 1.12.2022 was as follows: Share capital 100,000 shares of 10p each 10,000 Share premium 30,000 Revaluation reserve 40,000 Retained
The equity of Duffy Ltd at 1.12.2022 was as follows:
|
|
| |
| Share capital | 100,000 shares of 10p each | 10,000 |
| Share premium |
| 30,000 |
| Revaluation reserve |
| 40,000 |
| Retained profits |
| 90,000 |
|
|
| 170,000 |
On 10.12.2022, the company made a bonus issue. 10 shares were issued for every share in existence at that date in such a way as to maximise the retained profits.
The double entry reflecting this share issue is which of the following:
Select one answer:
Cr: Share premium 30,000 Cr: Revaluation reserve 40,000 Cr: Retained profits 30,000 Dr: Share capital 100,000
Dr: Retained profits 90,000 Dr: Share premium 10,000 Cr: Share capital 100,000
Dr: Share premium 10,000: Cr: Share capital 10,000
Dr: Share premium 30,000 Dr: Revaluation reserve 40,000 Dr: Retained profits 30,000 Cr: Share capital 100,000
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Bucks The Next Step Advanced Medical Coding And Auditing
Authors: Elsevier
1st Edition
0323874118, 978-0323874113
