A-LevelAccountingCompany AccountsOct/Nov 2024Paper 1 Q191 Mark
The statement of financial position of a company at 31 December showed the following: issued share capital: $200 000 200 000 ordinary shares at $1 per share During the following year, the company carried out the following: 1 On 1 January made a rights issue of one ordinary share for every five ordinary shares held. The share issue price was $1.50 per ordinary share and the issue was fully subscribed. 2 On 1 July made a bonus issue of one ordinary share for every four ordinary shares held at that date. What was the amount of cash received by the company in respect of these transactions?
A$40000
B$60.000
C$110000
D$135000
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The correct answer is B. 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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