O-LevelAccountingThe fundamentals of accountingOct/Nov 2020Paper 1 Q221 Mark

Z Limited provided the following information. $ 5% debentures 50 000 general reserve 25 000 issued ordinary share capital 300 000 retained earnings 75000 short-term bank loan 10000 What was the equity?

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

The correct answer is B: $400000.

Q: What topic does this question test?

This question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

A$325000

B$400000

C$450 000

D$460 000

✓ Correct Answer

The correct answer is B: $400000

📋 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 O-Level Accounting Question

Topic

This multiple-choice question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 3.

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