A-LevelAccountingLimited Companies (Share Capital & Reserves)May/June 2022Paper 1 Q181 Mark
The following information has been extracted from the statement of financial position of a limited company. 6% debenture (2026–2028) $20000 400000 ordinary shares of $1 each $400000 5-year bank loan $200000 share premium account $50000 retained earnings $75000 What is the value of the total equity?
A$525000
B$545000
C$695.000
D$725000
✓ Correct Answer
The correct answer is A: $525000
📋 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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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