Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

At the beginning of its financial year, a company had share capital consisting of 100000 ordinary shares of $1 each. The following transactions occurred during the year: 1. The company issued 50000 ordinary shares at $1.40 each. 2. It then made a bonus issue of 15000 ordinary shares of $1 each. 3. A 12% debenture of $100000 was issued. 4. A bank loan of $75000 was repaid. What was the net cash inflow arising from these transactions?

  • A$75000
  • B$95000
  • C$110000
  • D$210000

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