A-LevelAccountingFinancial Statements of Limited CompaniesFeb/Mar 2021Paper 1 Q161 Mark
The total of shareholders' equity at 31 December 2019 was $45500. During the year ended 31 December 2020, the following took place. 1 An issue of 10000 ordinary shares of $1 each at a premium of $0.25 was made. 2 A bonus issue of 5000 shares of $1 each was made. 3 Buildings were revalued from $250000 to $265000. 4 The profit for the year was $20400. 5 There was a transfer to the general reserve of $6000. 6 The directors proposed a final dividend of $8000. What was the balance of the shareholders' equity at 31 December 2020?
A$85400
B$87 400
C$93400
D$98400
✓ Correct Answer
The correct answer is C: $93400
📋 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.
🔒
Unlock the Examiner's Analysis
Sign up for free to reveal the full examiner report, trap analysis, and mark scheme breakdown for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep