A-LevelAccountingLimited CompaniesMay/June 2011Paper 1 Q91 Mark
An extract from Bumble Ltd's balance sheet shows the following. $000 ordinary shares of $0.25 each 500 share premium 100 retained earnings 300 The company makes a rights issue of 1 share for each 4 held at a price of $0.30 per share. All shares are taken up. What will the new balance sheet show?
Aordinary shares of $0.25 each 625, rights issue -, share premium 100, retained earnings 300
Bordinary shares of $0.25 each 500, rights issue 125, share premium 125, retained earnings 275
Cordinary shares of $0.25 each 625, rights issue -, share premium 125, retained earnings 300
Dordinary shares of $0.25 each 625, rights issue -, share premium 100, retained earnings 325
✓ 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...
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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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