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

Preparation of financial statements — practice question

At 1 January 2021, W Limited's total revenue reserves stood at $122000. In the year ending 31 December 2021, the following events occurred: 1 A dividend of $7500 was paid. 2 An amount of $10000 was moved from retained earnings to general reserve. 3 Premises were revalued upwards by $19800. For the year ending 31 December 2021, W Limited recorded a profit for the year of $32000. What was the total of revenue reserves at 31 December 2021?

  • A$136500
  • B$141800
  • C$146500
  • D$156300

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