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

Preparation of financial statements — practice question

The information below has been taken from the draft statement of financial position for a limited company on 31 December. ordinary share capital: $\$900000$ share premium: $\$80000$ general reserve: $\$96000$ retained earnings (opening): $\$230000$ profit for the year: $\$145000$ What is the largest dividend the limited company is able to declare?

  • A$\$145000$
  • B$\$375000$
  • C$\$471000$
  • D$\$551000$

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