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

Preparation of financial statements — practice question

A company makes an issue of $50000$ ordinary shares of $\$5$ each at a premium of $\$15$. It also makes a $4\%$ debenture issue of $\$300000$. By what amount do the net assets of the company increase?

  • A$250000$
  • B$550000$
  • C$1000000$
  • D$1300000$

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