A-LevelAccountingCompany AccountsOct/Nov 2020Paper 1 Q151 Mark

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?

Q: What topic does this question test?

This question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

ACapital reserves increased by $200000.

BCash and cash equivalents increased by $300 000.

COrdinary share capital increased by $100000.

DRevenue reserves increased by $400 000.

✓ Correct Answer

The correct answer is D: Revenue reserves increased by $400 000.

📋 Examiner Report & Trap Analysis

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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 2.

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