A-LevelAccountingFinancial Statements of Limited CompaniesFeb/Mar 2023Paper 1 Q191 Mark
The following information is available for a limited company for a financial year ended on 31 December. $ total equity on 1 January 492 000 profit for the year 70500 dividends paid 24 000 dividends proposed 12000 On 30 June, there was a bonus issue of 20 000 ordinary shares of $1 each. On 31 December, the following decisions were made. 1 The buildings are to be revalued at $250000. These had cost $200000 and the accumulated depreciation was $50000. 2 There is to be a transfer of $5000 to the general reserve. What is the total equity on 31 December after these adjustments have been made?
A$588 500
B$613500
C$618500
D$638 500
✓ Correct Answer
The correct answer is D. 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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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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