A-LevelAccountingCompany AccountsMay/June 2025Paper 1 Q201 Mark
The table shows a company's equity. ordinary shares of $1.00 each $200 000 share premium account $80 000 revenue reserves $160 000 Changes now to be made to the equity (in the order given) are as follows: • a one-for-one bonus issue of ordinary shares • a rights issue of 100000 ordinary shares of $1.00 each at $1.40 per share. The company wishes to maintain reserves in the most flexible form. What will be the equity of the company?
Aordinary share capital: $500 000, share premium: $40 000, revenue reserves: $40000
Bordinary share capital: $500 000, share premium: $80 000, revenue reserves: nil
Cordinary share capital: $540 000, share premium: nil, revenue reserves: $40000
Dordinary share capital: $540 000, share premium: $40 000, revenue reserves: $40000
✓ Correct Answer
The correct answer is A. 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