WAEC Financial Accounting 2000 Question 10

Question 10

Company Accounts

In a bonus issue of one new share for every four held, a holder of 100,000 shares will get additional shares of

  1. A.50,000
  2. B.25,000
  3. C.20,000
  4. D.10,000.
Show the answer and explanation

Answer: B (25,000)

Explanation

100,000 ÷ 4 = 25,000 bonus shares.