A-LevelAccountingPreparation of financial statements9706/12 · May/June 2013 · Q141 Mark

During the year ended 31 December 2012 a business made a profit of $31000. A dividend of 8% was paid on the 200000 ordinary shares of $0.50 each, and $12000 was transferred to general reserve. The retained earnings of the business on 31 December 2012 amounted to $68000. What was the balance of retained earnings on 1 January 2012?

A$41000

B$57000

C$65000

D$79000

✓ Correct answer

B: $57000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2013 Paper 1 Variant 2, question 14.

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