Accounting Multiple Choice Question – 9 January 2021

A company has been wound up and the only assets that remain have realised £45,000.

A summary of the company’s capital structure shows:

1. ordinary shares – £20,000
2. preference shares – £40,000
3. loan stock – £30,000

How will the £45,000 be distributed?

Select ONE answer:

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 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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