A company issued 100000 ordinary shares of $1 each at a premium of $\$ 2$. The market value was $\$ 4$ per share.
Which statement is not correct?
1 )
Capital reserves increased by $200000.
2 )
Cash and cash equivalents increased by $300000.
3 )
Ordinary share capital increased by $100000.
Revenue reserves increased by $400000.
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