A-LevelAccountingCompany Accounts - Share Capital and DividendsMay/June 2019Paper 1 Q151 Mark
On 1 January a company's equity included 100000 $1 ordinary shares. The directors of the company then did the following: 1 March Made a rights issue of 20 000 ordinary shares at $1.25 each. The rights issue was fully subscribed. 1 June Made a bonus issue of 5000 ordinary shares. 1 July Paid an interim dividend of $0.10 on all of the shares in issue at that date. By how much did the bank account increase as a result of these transactions?
A$12500
B$17500
C$30000
D$37000
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of company accounts - share capital and dividends 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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