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?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: $1 000 000.

Q: What topic does this question test?

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

A$250 000

B$550 000

C$1 000 000

D$1 300 000

✓ Correct Answer

The correct answer is C: $1 000 000

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

Source

This question appeared in the Cambridge A-Level Accounting May/June 2011 examination, Paper 1 Variant 2.

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