A Accounting

Retained earnings (video below)

The following extract is from the statement of profit or loss of ABC Co for the year ended 30 April 20X7.

$
Profit before tax 17,000
Tax (8,000)
Profit for the year 9,000

In addition to the profit above:

1. ABC Co paid a dividend of $5,250 during the year.

2. A gain on revaluation of land resulted in a surplus of $4,500.

What total amount will be added to retained earnings at the end of the financial year?

Answer

$
Profit for year 9,000
Dividend (5,250)
Added to retained earnings 3,750


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