A-LevelAccountingLimited Company AccountsOct/Nov 2012Paper 1 Q41 Mark

A trial balance shows the following information. $ premises at cost 150 000 accumulated depreciation on premises 25 000 On 1 January the premises are revalued at $270 000. At the same time 200 000 shares of $1 each are issued for $300 000. What is the value of the reserves created on 1 January?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: $245 000.

Q: What topic does this question test?

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

A$120 000

B$145 000

C$220 000

D$245 000

✓ Correct Answer

The correct answer is D: $245 000

📋 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 Limited 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 2012 examination, Paper 1 Variant 2.

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