Cambridge AS & A Level Accounting
1.5.4Limited companies
Overview
Questions will not be set on preference shares. The revaluation reserve is not used for a bonus issue.
Learning objectives
What the syllabus expects you to be able to do.
- 1.5.4.1Explain the features and accounting treatment of ordinary shares, bonus issues, rights issues, debentures, dividends and reserves.
- 1.5.4.2Evaluate for the company and its shareholders bonus and rights issues, and issuing shares against debentures; distinguish capital from revenue reserves.
- 1.5.4.3Prepare ledger accounts for an issue of shares at par or at a premium, a rights issue and a bonus issue.
- 1.5.4.4Prepare a statement of profit or loss, statement of financial position and statement of changes in equity for a company, and identify sources of finance for specified purposes.
Lessons
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Bonus issues and rights issues
55 min
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Company statement of financial position
60 min
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Company statement of profit or loss
55 min
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Issue of shares at par or at a premium
55 min
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Loan notes and debentures: issue, redemption and convertible loan stock
55 min
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Long-term capital: shares, loan notes and their advantages and disadvantages
45 min
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Share capital, dividends and reserves
50 min
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Statement of changes in equity
55 min
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Sample question
A sample question on this topic. Answer it, check it, then read the worked answer.
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