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A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2020 · Q171 Mark

The equity of P Limited at 1 January 2019 was $668000. Profit for the year ended 31 December 2019 was $120000. During the year ended 31 December 2019, the following also took place: 1 April Paid an interim dividend of $40000 1 July Transferred $50000 from retained earnings to general reserve 1 October Issued 5% debentures for $200000 31 December Proposed a final dividend of $30000 What was the total equity of P Limited at 31 December 2019?

A$698000
B$718000
C$748000
D$948000

✓ Correct answer

C: $748000

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About this question

Topic
Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 17.

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