Question
Please only correct answers needed Revenue reserves are Aaccumulated and undistributed profits of a company Bamounts that cannot be distributed as dividends Camounts set aisde
Please only correct answers needed
Revenue reserves are
Aaccumulated and undistributed profits of a company
Bamounts that cannot be distributed as dividends
Camounts set aisde out of profits to replace revenue items
Damounts set aside out of profits for a specific purpose
(2 marks)
11.2 The correct ledger entries needed to record the issue of 400,000 1 shares at a premium of 60p, and paid for by cheque, in full, would be
DebitCredit
Share premium
Share capital
Bank
(2 marks)
11.3 Which one of the following would you expect to find in the appropriation account of a limited company, for the current year?
APreference dividend proposed during the previous year, but paid in the current year.
BPreference dividend proposed during the current year, but paid in the following year.
CDirectors' fees.
DAuditors' fees.
(2 marks)
11.4A business has made a profit of 4,000 but its bank balance has fallen by 2,500.
This could be due to
Adepreciation of 1,500 and an increase in stock of 5,000
Bdepreciation of 3,000 and the repayment of a loan of 3,500
Cdepreciation of 6,000 and the purchase of new fixed assets for 12,500
Dthe disposal of a fixed asset for 65,000 less than its book value
(2 marks)
11.5 The record of how the profit or loss of a company has been allocated to distributions and reserves is found in the
Acapital account
Bprofit and loss account
Creserves account
Dappropriation account
(2 marks)
11.6Revenue reserve would decrease if a company
Asets aside profits to pay future dividends
Btransfers amounts into 'general reserves'
Cissues shares at a premium
Dpays dividend
(2 marks)
11.7Which one of the following does not form part of the equity capital of a limited company?
APreference share capital
BShare premium
CRevaluation reserve
DOrdinary share capital
(2 marks)
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