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2 marksChanges in Ownership and Capital Structure

CAPE Accounting Unit 1 · 2016 · Paper 2 · Question 2(c)(i)

Sunshine Bakery has existing share capital of 400,000 (800,000 ordinary shares of 50 cents each), trading at 2.00 each on the Barbados Stock Exchange. Directors make a rights issue of 2 for 5 at $1.50 each.

Calculate how many shares will be issued if all the rights are taken up. (Show all working.)

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Other parts of this question

  1. 2(a)(i)Prepare a partnership Statement of Comprehensive Income for the year ended 31 December 2015 including as much detail as possible.[8 marks]
  2. 2(a)(ii)Prepare a partnership Statement of Changes in Owners' Equity for the year ended 31 December 2015.[5 marks]
  3. 2(b)(i)List THREE possible reasons why a business partnership may be dissolved.[3 marks]
  4. 2(b)(ii)Explain the difference between a judicial and a non-judicial dissolution of partnership.[4 marks]
  5. 2(b)(iii)Identify THREE steps required to dissolve a partnership.[3 marks]
  6. 2(b)(iv)Identify FOUR benefits of operating as a co-operative.[4 marks]
  7. 2(b)(v)State TWO advantages and ONE disadvantage of a sole proprietorship.[3 marks]
  8. 2(c)(ii)Prepare the journal entry (without narrative) to record the rights issue transaction.[3 marks]

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