A-LevelAccountingCompany AccountsMay/June 2021Paper 1 Q161 Mark
At the start of the year a limited company's equity was as follows. $ ordinary shares of $1 each 200 000 retained earnings 120 000 During the year the following took place. 1 Non-current assets were revalued upwards by $70000. 2 An interim dividend of $30000 was paid. 3 A 10% debenture (2030) of $10000 was issued. The profit for the year was $80000. What was the total equity at the end of the year?
A$380000
B$390 000
C$440 000
D$480000
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of company accounts 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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