A-LevelAccountingCompany AccountsFeb/Mar 2025Paper 1 Q171 Mark
A company uses a revenue reserve to make a bonus issue of ordinary shares. Which accounts should be debited and credited to record this?
Aaccount debited: general reserve, account credited: share capital
Baccount debited: share capital, account credited: general reserve
Caccount debited: share capital, account credited: retained earnings
Daccount debited: share premium, account credited: share capital
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of company accounts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep