A-LevelAccountingCompany AccountsMay/June 2023Paper 1 Q171 Mark
A company had sufficient balances in each of the share premium, general reserve and retained earnings accounts to issue bonus shares. During the year, bonus shares were issued. The directors decided to keep the reserves in their most flexible form. Which ledger account will be debited on the issue of the bonus shares?
Abank
Bgeneral reserve
Cretained earnings
Dshare premium
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of company accounts 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep