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

Preparation of financial statements — practice question

On 1 January 2017, a company had total equity of $400000$. The information below relates to the year ending 31 December 2017. 1. In June 2017, there was a rights issue of $20000$ ordinary shares of $1$ each at $1.50$. Every one of these shares was subscribed. 2. Profit for the year amounted to $45000$. 3. Dividends paid during the year came to $8000$ and dividends proposed at the year end were $15000$. 4. A transfer of $10000$ was made to the general reserve. What was the total equity at 31 December 2017?

  • A$442000$
  • B$452000$
  • C$467000$
  • D$477000$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI