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?

Q: What topic does this question test?

This question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

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: issued ordinary share capital $000 800 share premium $000 190

📋 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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About This A-Level Accounting Question

Topic

This multiple-choice question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2009 examination, Paper 1 Variant 2.

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