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

Preparation of financial statements — practice question

At the start of the period, a company had issued ordinary share capital of $240000$ (nominal value $0.60$ per share). During the period, a rights issue of one share for every five held was carried out at a price of $0.90$ per share. At that point, the market price stood at $1.10$ per share. What was the issued ordinary share capital after the rights issue?

  • A$288000
  • B$292800
  • C$312000
  • D$328000

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI