A-LevelAccountingCompany AccountsMay/June 2010Paper 1 Q181 Mark
At 1 January 2009 the capital structure of a company was as follows. issued share capital 100 000 ordinary shares of $1 each $100 000 share premium account $30 000 On 1 April 2009 the company made a rights issue of 20 000 shares of $1 each for $36 000. On 1 June 2009 a bonus issue of one share for every six in issue was made. The share premium account was used for this purpose. What is the balance on the share premium account at 31 December 2009?
A$26 000
B$34 000
C$46 000
D$56 000
✓ 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...
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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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