Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The excerpt below comes from a statement of changes in equity. In the year concerned, these events took place: (1) An interim dividend of $4875$ was paid. (2) A final dividend of $6000$ was proposed. (3) $2500$ was transferred to the general reserve. What was the balance of retained earnings at the end of the year?

  • A$31625$
  • B$36625$
  • C$37625$
  • D$42625$

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