A-LevelAccountingCompaniesFeb/Mar 2020Paper 1 Q171 Mark
The equity of P Limited at 1 January 2019 was $668000. Profit for the year ended 31 December 2019 was $120000. During the year ended 31 December 2019, the following also took place: 1 April Paid an interim dividend of $40000 1 July Transferred $50000 from retained earnings to general reserve 1 October Issued 5% debentures for $200000 31 December Proposed a final dividend of $30000 What was the total equity of P Limited at 31 December 2019?
A$698000
B$718000
C$748000
D$948000
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of companies 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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