
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:
- £60,000
- £70,000
- £90,000
- £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
- Not correct
- Not correct
- Not correct
- Correct – £150k – £90k = £60k therefore £160k – £60k = £100k
This work is licensed under a Creative Commons Attribution 4.0 International License.