A-LevelAccountingLimited CompaniesMay/June 2018Paper 1 Q161 Mark
A company issued 50000 ordinary shares of $0.50 each at a price of $0.60 each. What were the accounting entries for the issue? debit $ credit $ bank 30000 share capital 25000 share premium 5000 bank 25000 share capital 30000 share premium 5000 share capital 30000 bank 30000 share capital 25000 bank 30000 share premium 5000
Adebit bank $30000, credit share capital $25000, share premium $5000
Bdebit bank $25000, share premium $5000, credit share capital $30000
Cdebit share capital $30000, credit bank $30000
Ddebit share capital $25000, share premium $5000, credit bank $30000
✓ Correct Answer
The correct answer is A. 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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