A-LevelAccountingLimited CompaniesMay/June 2015Paper 1 Q171 Mark
The profits of Bronte Limited are as follows. year ended 31 December 2013 nil year ended 31 December 2014 $60000 Bronte Limited has in issue 200000 5% preference shares of $1 each. What is the profit available for distribution to ordinary shareholders for the year ended 31 December 2014, if the preference shares are (i) cumulative or (ii) non-cumulative?
A40000 40000
B40000 50 000
C50 000 40000
D50 000 50 000
✓ Correct Answer
The correct answer is B. 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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