The following balances have been extracted from Alex Ltd’s Trial Balance as at 31 December 2018.
Debit Credit
Retained profits as at 1 January 2018 £4,695,600
10% debentures issued in 2015 £1,300,000
Debenture interest paid £65,000
Operating profit for the year ended 31 December 2018 is £520,000. Corporation tax for the year has been estimated at £156,000.
What is the figure for retained profits in Alex’s SOFP as at 31 December 2018?
Select ONE answer:
- £4,929,600
- £4,994,600
- £5,059,600
- £5,215,600
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
- Correct – 4,695,600 + 520,000 – (130,000) – (156,000) = 4,929,600
- Not correct
- Not correct
- Not correct
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