A-LevelAccountingCompany AccountsFeb/Mar 2025Paper 1 Q181 Mark
A company had an issued share capital of 400000 ordinary shares of $1 each. It then made a bonus issue of one ordinary share for every five ordinary shares held. This was later followed by a rights issue of one ordinary share for every three ordinary shares held. What was the balance on the share capital account after these transactions?
A$480 000
B$533333
C$613333
D$640 000
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of company accounts 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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