Accounting 0452 · IGCSE · Limited companies

Limited companies — practice question

Y Limited is incorporated as a public limited company.
(a)[1]

State one difference between a public limited company and a private limited company.

(b)[2]

Explain how issued share capital differs from called up share capital.

(c)[2]

State two advantages of trading as a limited company.

(d)[7]

Prepare Y Limited’s statement of changes in equity for the year ended 31 December 2023.

(e)[2]

Using the information from your statement of changes in equity in 4(d), prepare an extract from the statement of financial position at 31 December 2023 showing only the equity and reserves section.

(f)[5]

Advise the board of directors on whether they should raise the additional finance by issuing extra ordinary shares or debentures. Justify your answer.

(g)[1]

State the heading of the section in a company’s statement of financial position that would contain debentures.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: A public limited company may offer shares to the public / has to publish its accounts

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