A-LevelAccountingFinancial Statements of CompaniesOct/Nov 2022Paper 1 Q191 Mark

X Limited recorded the following information in its books of account. 1 issue of 10000 ordinary shares of $1 each at a price of $1.80 2 payment of dividends, $6200 3 transfer to general reserve, $7500 What was the effect on total revenue reserves?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: $6200 decrease.

Q: What topic does this question test?

This question tests Financial Statements of Companies in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$6200 decrease

B$6700 increase

C$8000 increase

D$13700 decrease

✓ Correct Answer

The correct answer is A: $6200 decrease

📋 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 Financial Statements of Companies in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2022 examination, Paper 1 Variant 2.

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