(a)[11]
Prepare the ledger account below: Ordinary share capital.
(b)[2]
State two distinctions between capital reserves and revenue reserves.
(c)[2]
Explain one reason why a company could make a bonus issue of shares.
Accounting 9706 · AS & A Level · The accounting system
The accounting system — practice question
The figures below have been taken from D Limited’s financial statements as at 30 June 2020.