A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2022 · Q181 Mark
On 1 January a company had 300000 ordinary shares of $1 each and a 10% bank loan of $100000. On 1 July the company issued a 6% debenture of $800000. The profit from operations for the year ended 31 December was $120000. The company paid a dividend of $0.05 per ordinary share during the year. What was the profit for the year ended 31 December?
A$71000
B$86000
C$96000
D$110000
✓ Correct answer
B: $86000
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