A Level Accounting (9706)•9706/11/O/N/19

Explanation
Rights issue proceeds determine bank increase Steps:
- Calculate original shares: 0.50 = 80,000 shares.
- Bonus issue: 1 for 4 adds 80,000 ÷ 4 = 20,000 shares; total shares = 100,000 (no cash inflow).
- Rights issue at $1.15 per share is fully subscribed, but ratio or number of new shares unspecified.
- Bank increase equals rights proceeds, but cannot compute without issue size.
Not enough information.
Why D is correct:
- N/A; insufficient details to confirm any option.
Why the others are wrong:
- A, B, C: All require assuming unstated rights issue size, which is invalid.
Final answer: Not enough information.
Topic: Preparation of financial statements
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