Day: February 4, 2023

A published Balance Sheet for a company at 1 January 2015 included:

Ordinary share capital – £500M
Profit and Loss Account – £200M

The company results for the year to 31 December 2015 included:

profit before taxation – £50M
taxation – £15M
dividends proposed – £10M
revaluation surplus on land – £15M

What was the Profit and Loss Account balance at 31 December 2015?

Select ONE answer:

1. £225M
2. £240M
3. £250M
4. £265M

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 1

1. Correct – £200M + (£50M – £15M – £10M)
2. Not correct
3. Not correct
4. Not correct

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