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

Preparation of financial statements — practice question

At the close of the financial year, a company gives the following financial details: retained earnings at the beginning of the year $50000; profit earned during the year $120000; ordinary dividends paid in the year $70000; ordinary dividends proposed for payment in the following financial year $30000; transfer to general reserve $20000. What amount of retained earnings is shown at the end of the financial year?

  • A$50000
  • B$70000
  • C$80000
  • D$100000

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