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

Preparation of financial statements — practice question

The data below have been taken from the statement of financial position for a limited company. 6% debenture (2020-2022): $20\,000$ 400 000 ordinary shares of $1$ each: $400\,000$ 5-year bank loan: $200\,000$ Share premium account: $50\,000$ Retained earnings: $75\,000$ What is the amount of total equity?

  • A$525\,000$
  • B$545\,000$
  • C$695\,000$
  • D$725\,000$

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