Paper 3 · Statement of changes in equity / impairment

Karimba Limited had ordinary share capital of $1 200 000 in shares of$ 0,50 each. The directors made a bonus issue of one new share for every six shares already in issue. How many bonus shares were issued?

Model answer

400000

Also accepted: 400 000, 400,000

Explanation: Shares in issue before the bonus =

1 200 000 /

0,50 = 2 400 000 shares. Bonus shares = 2 400 000 / 6 = 400 000 shares.

Derived from ZIMSEC Accounting Paper 3, June 2019, Q1

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