* not completed

. Tahir Limited has 500,000 £1 ordinary shares in issue. The directors are concerned at the rising balance on retained earnings and wish to make a bonus issue of 1 new share for every 4 shares currently held by the shareholders. Which of the following is the correct double entry required to record this issue of bonus shares?

Debit share capital £125,000, Credit retained earnings £125,000. correct incorrect

Debit share capital £625,000, Credit retained earnings £625,000. correct incorrect

Debit retained earnings £125,000, Credit share capital £125,000. correct incorrect

Debit retained earnings £625,000, Credit share capital £625,000. correct incorrect

* not completed

. Hena Limited has 400,000 ordinary shares of 25 pence each in issue. The directors are concerned at the large balance on retained earnings and wish to make a bonus issue of 2 new shares for every 1 share currently held by the shareholders. Which of the following is the correct double entry required to record this issue of bonus shares?

Debit retained earnings £200,000, Credit share capital £200,000. correct incorrect

Debit share capital £200,000, Credit retained earnings £200,000. correct incorrect

Debit retained earnings £800,000, Credit share capital £800,000. correct incorrect

Debit share capital £800,000, Credit retained earnings £800,000. correct incorrect

* not completed

. Sara Limited has 1,050,000 ordinary shares of 50 pence each in issue. The directors are concerned about the large balance on retained earnings and wish to make a bonus issue of 4 new shares for every 7 shares currently held by the shareholders. Which of the following is the correct double entry required to record this issue of bonus shares?

Debit share capital £300,000, Credit retained earnings £300,000. correct incorrect

Debit retained earnings £300,000, Credit share capital £300,000. correct incorrect

Debit share capital £918,750, Credit retained earnings £918,750. correct incorrect

Debit retained earnings £918,750, Credit share capital £918,750 correct incorrect

* not completed

. Nasira Plc currently has 12,500,000 ordinary shares of £1 each in issue with a market price of £2.50. The directors wish to raise new capital and have decided to undertake a rights issue of 3 new ordinary shares for every 5 currently held. The shares to be issued under the rights issue will be offered to existing shareholders at a price of £1.50 per share.
How many new ordinary shares is Nasira Plc planning to issue under the rights issue?

20,833,333 correct incorrect

20,000,000 correct incorrect

12,500,000 correct incorrect

7,500,000 correct incorrect

* not completed

. Nasira Plc currently has 12,500,000 ordinary shares of £1 each in issue with a market price of £2.50. The directors wish to raise new capital and have decided to undertake a rights issue of 3 new ordinary shares for every 5 currently held. The shares to be issued under the rights issue will be offered to existing shareholders at a price of £1.50 per share.
How much cash will Nasira Plc raise from the rights issue?

£7,500,000 correct incorrect

£11,250,000 correct incorrect

£18,750,000 correct incorrect

£30,000,000 correct incorrect

* not completed

. Nasira Plc currently has 12,500,000 ordinary shares of £1 each in issue with a market price of £2.50. The directors wish to raise new capital and have decided to undertake a rights issue of 3 new ordinary shares for every 5 currently held. The shares to be issued under the rights issue will be offered to existing shareholders at a price of £1.50 per share.
Which of the following is the correct double entry to record Nasira Plc's rights issue in the company's books of account?

Debit cash £7,500,000, Credit share capital £7,500,000. correct incorrect

Debit cash £11,250,000, Credit share capital £11,250,000. correct incorrect

Debit cash £11,250,000, Credit share capital £7,500,000, Credit share premium £3,750,000. correct incorrect

Debit cash £18,750,000, Credit share capital £7,500,000, Credit share premium £11,250,000. correct incorrect

* not completed

. Fazila Plc currently has 8,000,000 ordinary shares of 20 pence each in issue with a market price of £1.30. The directors wish to raise new capital and have decided to undertake a rights issue of 3 new ordinary shares for every 2 currently held. The shares to be issued under the rights issue will be offered to existing shareholders at a premium of 55 pence per share.
How many new ordinary shares is Fazila Plc planning to issue under the rights issue?

5,333,333 correct incorrect

8,000,000 correct incorrect

12,000,000 correct incorrect

20,000,000 correct incorrect

* not completed

. Fazila Plc currently has 8,000,000 ordinary shares of 20 pence each in issue with a market price of £1.30. The directors wish to raise new capital and have decided to undertake a rights issue of 3 new ordinary shares for every 2 currently held. The shares to be issued under the rights issue will be offered to existing shareholders at a premium of 55 pence per share.
How much cash will Fazila Plc raise from the rights issue?

£2,400,000 correct incorrect

£6,600,000 correct incorrect

£9,000,000 correct incorrect

£15,600,000 correct incorrect

* not completed

. Fazila Plc currently has 8,000,000 ordinary shares of 20 pence each in issue with a market price of £1.30. The directors wish to raise new capital and have decided to undertake a rights issue of 3 new ordinary shares for every 2 currently held. The shares to be issued under the rights issue will be offered to existing shareholders at a premium of 55 pence per share.
Which of the following is the correct double entry to record the rights issue of shares in Fazila Plc's books of account?

Debit cash £2,400,000, Credit share capital £2,400,000. correct incorrect

Debit cash £6,600,000, Credit share premium £6,600,000. correct incorrect

Debit cash £9,000,000, Credit share capital £2,400,000, Credit share premium £6,600,000. correct incorrect

Debit cash £15,600,000, Credit share capital £2,400,000, Credit share premium £13,200,000. correct incorrect