A-LevelAccountingLimited CompaniesMay/June 2011Paper 1 Q81 Mark
A company issues for cash 50 000 shares of $5 each at a premium of $15 each and $300 000 4% debentures. By what amount will the net assets of the company increase?
A$250 000
B$550 000
C$1 000 000
D$1 300 000
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of limited companies 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...
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