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?
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. This question tests the candidate's understanding of company accounts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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