If the balance of the share capital account is $300,000 at the beginning of the year and $410,000 at the end of the year, and there has been a 1 for 6 bonus issue of shares at the start of the year, the amount that will appear in the cash flow statement for proceeds from the issue of shares is:

Question

Quizplus · Accepted Answer

The bonus issue of shares does not result in any cash inflow to the company, as it involves issuing additional shares to existing shareholders without any payment. Therefore, the amount that will appear in the cash flow statement for proceeds from the issue of shares is $0.

If the Balance of the Share Capital Account Is $300,000