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?

Q: What topic does this question test?

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

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: account debited: general reserve, account credited: share capital

📋 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 Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2025 examination, Paper 1 Variant 2.

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