Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A company had issued share capital made up of $400000$ ordinary shares of $1$ each. It then carried out a bonus issue of one share for every five held. After that, it made a rights issue of one share for every three held. What was the balance on the share capital account after these transactions?

  • A$480000$
  • B$533333$
  • C$613333$
  • D$640000$

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