Quelpr
5 marksLimited Liability Companies

CSEC Principles of Accounts · May/June 2012 · Paper 2 · Question 5(b)(i)

Aries Limited issues remaining ordinary shares at 1.50 each and remaining preference shares at 1.00 each, and buys back $21 000 of debentures.

Draft General Journal entries to record the issue of the remaining ordinary shares at $1.50 each (narratives not required).

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Other parts of this question

  1. 5(a)(i)Explain, in ONE sentence, the meaning of: The owners of a corporation benefit from limited liability.[1 mark]
  2. 5(a)(ii)Explain, in ONE sentence, what the Board of Directors of Aries Limited does.[1 mark]
  3. 5(a)(iii)Explain, in ONE sentence, the meaning of: The Registrar of Companies has received the documents required to start up the new corporation.[1 mark]
  4. 5(b)(ii)Draft General Journal entries to record the issue of the remaining preference shares at $1.00 each (narratives not required).[2 marks]
  5. 5(b)(iii)Draft General Journal entries to record the reduction in debentures (narratives not required).[3 marks]
  6. 5(c)Prepare the Appropriation Account for Aries Limited for the year ended 31 May 2011, showing all working.[7 marks]

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