Timmy Plc is making a bonus issue of 2 new ordinary shares for every 5 already held. The shares have a par value of 5 pence. Timmy plc currently has 500,000,000 ordinary shares in issue. What are the correct entries to record this transaction in the statement of financial position?
A) Increase share capital £10,000,000
B) Increase share capital £10,000,000.
C) Decrease share capital £10,000,000
D) Decrease share capital £10,000,000.
Correct Answer:
Verified
Q21: Folly Limited wishes to raise £300,000 in
Q22: Duck Limited wishes to raise £1,200,000 in
Q23: Paolo Limited is issuing 200,000 ordinary shares
Q24: Carola Limited is issuing 250,000 ordinary shares
Q25: Which one of the following statements does
Q27: Bonus issues of shares involve the capitalisation
Q28: Bonus shares are issued to existing shareholders
Q29: Bonus shares are issued to existing shareholders
Q30: XYZ Plc is making a rights issue.
Q31: Which one of the following statements describes
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents