The following is an extract from a statement of changes in equity.
ordinary share general retained
share capital premium reserve earnings
$ $ $ $
balance at the 75000 15000 3000 45000
start of the year
During the year the following occurred.
1 An interim dividend of $4875 was paid.
2 A final dividend of $6000 was proposed.
3 $2500 was transferred to the general reserve.
What was the balance of retained earnings at the end of the year?

Q: What topic does this question test?

This question tests Company Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2018 examination, Paper 1 Variant 2 (9706_m18_qp_12.pdf).

Question

The following is an extract from a statement of changes in equity.
ordinary	share	general	retained
share capital	premium	reserve	earnings
$	$	$	$
balance at the	75000	15000	3000	45000
start of the year
During the year the following occurred.
1 An interim dividend of $4875 was paid.
2 A final dividend of $6000 was proposed.
3 $2500 was transferred to the general reserve.
What was the balance of retained earnings at the end of the year?

Oracle Prep · Accepted Answer

The correct answer is C: $37625.

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