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)