O-LevelAccountingPreparation of financial statements7707/11 · May/June 2014 · Q241 Mark

On 1 January NH Limited was formed with the issue of 200000 ordinary shares of $0.50 each. During the first year it made a profit of $21000. A dividend of $0.02 per share was paid and $10000 was transferred to general reserve. What was the total of reserves on 31 December?

A$7000

B$9000

C$17000

D$19000

✓ Correct answer

C: $17000

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Topic: Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2014 Paper 1 Variant 1, question 24.

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