Day: October 15, 2022

Companies are required to include a statement of total recognised gains and losses within their published financial accounts.

Below is information extracted from the financial statements of a company for the year ended 31 March 2015.

• premium received on the issue of shares – £150k
• profit on ordinary activities after taxation – £600k
• unrealised surplus on the revaluation of property – £280k

What should the company show as the net gain for the year?

Select ONE answer:

1. £730k
2. £750k
3. £880k
4. £1,030k

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 3

1. Not correct
2. Not correct
3. Correct = £600k + £280k
4. Not correct

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