Accounting Multiple Choice Question – 12 September 2020

The issued share capital of Alex Limited consists of ordinary shares.

The retained earnings were £90,000 on 1 August 2019. These had increased to £150,000 on 31 July 2020.

The company earned a profit for the year of £160,000.

What was the total ordinary share dividend for the year?

Select ONE answer:

1. £60,000
2. £70,000
3. £90,000
4. £100,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – £150k – £90k = £60k therefore £160k – £60k = £100k

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