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

Preparation of financial statements — practice question

At 31 December 2017, a business’s statement of financial position reported the figures below: retained earnings $136\,000 general reserves $28\,000 share premium $55\,000 Over the year ending 31 December 2017, the business recorded a profit for the year of $25\,000 and transferred $10\,000 to the general reserve. What was the total of revenue reserves on 1 January 2017?

  • A$101\,000
  • B$139\,000
  • C$149\,000
  • D$194\,000

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