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

Preparation of financial statements — practice question

At the start of 2016, on 1 January 2016, the company’s total equity stood at $56000$. During the year, the company earned a profit of $13000$, and it paid out a dividend of $2000$. By the end of the year, $5000$ had been moved to the general reserve, and the directors recommended a final dividend of $4000$. What was the total equity on 31 December 2016?

  • A$58000$
  • B$62000$
  • C$67000$
  • D$68000$

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