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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