McDonagal Inc.sold ordinary shares for £2,200,000.This transaction will increase

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When McDonagal Inc. sells ordinary shares, it receives cash in exchange for the shares. This cash inflow increases the company's Cash account. At the same time, the company's Share Capital account is increased by the same amount (£2,200,000 in this case) to reflect the new funds brought in by the sale of shares. As no goods or services were sold, Revenue cannot be increased by this transaction. Retained Earnings also cannot be affected by this transaction as the company hasn't generated any profits yet.