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
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The correct answer is C. This question tests the candidate's understanding of financial statements of limited companies within the Accountingsyllabus. The examiner's mark scheme requires...
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