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ZIMSEC A-Level Accounting

1.15Issue and Redemption of Shares

Issue and Redemption of Shares in ZIMSEC A-Level Accounting: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic67 practice questions3 lessons

Learning objectives

What the syllabus expects you to be able to do.

  1. 1.15.1State the types of shares, record the raising and repayment of share capital and analyse the effects of an issue of shares on the statement of financial position.
  2. 1.15.2Calculate bonus and rights issues, distinguish between them and examine the uses of share premium.
  3. 1.15.3Explain why companies redeem or purchase their own shares and create capital redemption reserve accounts.

Lessons

  • Bonus issues and rights issues

    55 min

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  • Issue of shares at par or at a premium

    55 min

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  • Redemption and purchase of own shares; capital redemption reserve

    55 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Issue and Redemption of Shares: sample question

1 mark

Which entry records a bonus issue of fully paid shares?

Choose one answer

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