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

Preparation of financial statements — practice question

The statement of equity for a limited company is shown below. Beginning of the year / End of the year: - ordinary shares of $1 each: $200000 / $250000 - retained earnings: $77000 / $112000 - total equity: $277000 / $362000 The following transactions occurred during the year: 1. A bonus issue of one ordinary share for every four ordinary shares held was issued. 2. Debenture interest of $18000 was paid. 3. An interim dividend of $22000 was paid. What was the profit for the year?

  • A$57000
  • B$107000
  • C$125000
  • D$157000

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