Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A limited company plans to issue shares at a price higher than the nominal value. Which items, other than the bank balance, will be affected by the share issue?

  • Ashare capital, capital reserves and revenue reserves
  • Bshare capital and capital reserves only
  • Cshare capital and revenue reserves only
  • Dshare capital only

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