A-LevelAccountingCompany AccountsOct/Nov 2009Paper 1 Q161 Mark
An extract from a company's balance sheet shows the following. $000 issued ordinary shares of $0.25 each 600 share premium account 150 retained profits 300 The company makes a rights issue of one new ordinary share for each three held, at a price of $0.30 per share. All shares were taken up. What does the new balance sheet show?
Aissued ordinary share capital $000 600 share premium $000 120
Bissued ordinary share capital $000 800 share premium $000 150
Cissued ordinary share capital $000 800 share premium $000 190
Dissued ordinary share capital $000 800 share premium $000 600
✓ 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...
📋 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