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

Preparation of financial statements — practice question

At the beginning of the year, a limited company’s equity consisted of the following. Ordinary shares of $1$ each: $200000$ Retained earnings: $120000$ Over the course of the year, these events occurred. 1. Non-current assets were revalued upwards by $70000$. 2. An interim dividend of $30000$ was paid. 3. A 10% debenture (2030) of $10000$ was issued. The profit for the year was $80000$. What did the total equity amount to at the end of the year?

  • A$380000$
  • B$390000$
  • C$440000$
  • D$480000$

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