Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

The extract below comes from the statement of financial position of X Limited at 31 December 2016.
(a)[6]

Prepare journal entries to record each of these transactions in the books of account. You do not need dates or narratives.

(b)[3]

Prepare a statement showing the effect that the transactions had on total equity.

(c)[3]

State three uses of a share premium account.

(d)[3]

State three reasons why a company might carry out a bonus issue of shares.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Share capital Cr 80000 / Share premium Cr 20000 / Bank Dr 100000

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