A-LevelAccountingLimited Companies (Share Capital)May/June 2022Paper 1 Q191 Mark
On 1 January, X Limited had share capital of 100000 ordinary shares which had been issued at their par value of $1 each. There was no share premium account. On 1 March, a bonus issue of one new ordinary share for every five ordinary shares held was made from retained earnings. On 1 June, the company made a rights issue of one new ordinary share for every four ordinary shares held at a price of $1.50 each. All the rights were taken up. How much was recorded in the share premium account?
A$12500
B$15000
C$30000
D$45000
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of limited companies (share capital) 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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