A-LevelAccountingLimited CompaniesFeb/Mar 2022Paper 1 Q191 Mark

The bank balance of a limited company was $390000 before the following transactions took place. 1 An issue of 500000 new shares of $0.50 each was made at a premium of $0.25 per share. 2 A debenture for $100000 was repaid. 3 A bonus issue of 100 000 shares of $0.50 each was made. What was the bank balance after these transactions?

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

The correct answer is B: $665000.

Q: What topic does this question test?

This question tests Limited Companies in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$540000

B$665000

C$715000

D$865000

✓ Correct Answer

The correct answer is B: $665000

📋 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 A-Level Accounting Question

Topic

This multiple-choice question tests Limited Companies in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2022 examination, Paper 1 Variant 2.

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