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

Preparation of financial statements — practice question

A company issued 25000 ordinary shares of $0.50 each at a premium of $25\%$. The market price was $1.50 per share. What amount of ordinary share capital should appear in the statement of financial position?

A$12500
B$15625
C$31250
D$37500

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