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

Preparation of financial statements — practice question

For the year ending 31 December 2018, the business earned a profit of $31000$. A dividend of $8\%$ was distributed on the $200000$ ordinary shares of $0.50$ each, and a further $12000$ was moved into general reserve. On 31 December 2018, the retained earnings of the business were $68000$. What was the retained earnings balance on 1 January 2018?

  • A$41000$
  • B$57000$
  • C$65000$
  • D$79000$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI