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

Preparation of financial statements — practice question

X Limited reported the following items in its accounting records. 1 the issue of 10000 ordinary shares of $1 each at a price of $1.80 2 dividend payments, $6200 3 transfer to general reserve, $7500 How would total revenue reserves be affected?

  • A$6200 decrease
  • B$6700 increase
  • C$8000 increase
  • D$13700 decrease

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