A-LevelAccountingLimited CompaniesFeb/Mar 2022Paper 1 Q181 Mark
A limited company had the following balances on 1 January 2021. revaluation reserve $20000, retained earnings $142000. Profit for the year ended 31 December 2021 was $105000. The revaluation reserve, $20000, was created two years ago from a revaluation of a property. The same property was revalued on 31 December 2021 with a revaluation loss of $35000. On 1 August 2021 an interim dividend, $40000, was paid. On 31 December 2021 a final dividend, $55000, was proposed. What was the value of retained earnings at 31 December 2021?
A$117000
B$137000
C$172000
D$192000
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The correct answer is D. This question tests the candidate's understanding of limited companies within the Accountingsyllabus. The examiner's mark scheme requires...
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