Question 18 Not yet answered Marked out of 1 P Flag question KML Corporation declared...
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Question 18 Not yet answered Marked out of 1 P Flag question KML Corporation declared a 2 for 4 bonus issue. The following is the abstract of SOFP before the bonus issue. Share capital consisting of 400,000 ordinary shares of OMR. 0.500 each, Share Premium Account OMR. 20,000. Revaluation Reserve OMR. 150,000. General Reserve OMR. 50,000. Retained Profits OMR. 100,000. The Company's policy for the purpose of accounting for bonus issue is not to use revaluation reserve whereas retained profits should only be used if other reserves are exhausted. What amount to be used from retained earnings for the bonus issue? a. OMR 30,000 ob. OMR 50,000 O c. OMR 60,000 O d. OMR 40,000
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