Mathematics · Corporate Accounting
An entity currently has 500,000 ordinary shares of $0.25 each in issue and a share premium account balance of $100,000. On 1 January, the entity made a rights issue of 1 share for every 2 held at a price of $1.10 per share, which was fully taken up. On 1 June, the entity made a bonus issue of 1 share for every 5 held, utilizing the share premium account for this purpose. What are the balances on the share capital and share premium accounts at the end of the year?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Share Capital: $187,500; Share Premium: $275,000
- 2Share Capital: $187,500; Share Premium: $312,500
- 3Share Capital: $225,000; Share Premium: $250,000
- 4Share Capital: $225,000; Share Premium: $275,000✓
Correct answer
Share Capital: $225,000; Share Premium: $275,000
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Mathematics?
Practice full-length Mathematics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Corporate Accounting MCQs →Want more practice questions on Corporate Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Mathematics · Corporate Accounting