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

Preparation of financial statements — practice question

At 31 December 2019, the total shareholders’ equity stood at $45500$. In the year ending 31 December 2020, these events occurred. 1 An issue of $10000$ ordinary shares of $1$ each at a premium of $0.25$ was made. 2 A bonus issue of $5000$ shares of $1$ each was made. 3 Buildings were revalued from $250000$ to $265000$. 4 The profit for the year was $20400$. 5 There was a transfer to the general reserve of $6000$. 6 The directors proposed a final dividend of $8000$. Calculate the balance of the shareholders’ equity at 31 December 2020?

  • A$85400$
  • B$87400$
  • C$93400$
  • D$98400$

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