A-LevelAccountingCompany AccountsOct/Nov 2019Paper 1 Q171 Mark
The directors of a limited company recently made a rights issue of one ordinary share for every three held at a premium of $0.50 per share. The rights issue was fully subscribed. The statement of financial position showed the following information after the rights issue was made. $000 issued share capital: (shares of $1 each) 1200 share premium 300 Which amount was debited to the company's bank account when the rights issue was made?
A$300 000
B$400 000
C$450 000
D$600 000
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of company accounts within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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