Day: September 11, 2020

Lucy Limited provided the following information.

Issued and paid up share capital – £400,000
General Reserves – £60,000
Retained Earnings – £30,000
20% Debentures – £40,000

What was the value of equity?

Select ONE answer:

1. £430,000
2. £460,000
3. £490,000
4. £530,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £400k + £60k + £30k
4. Not correct

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