The following extract is from the income statement of Gearing Co for the year ended 30 April X8.
| Profit befor tax | 50,000 |
| Tax | 20,000 |
| Profit for the year | 30,000 |
In addition to the profit above:
1. Gearing Co Paid a dividend of $0.02 per share during the year. (It has 1,000,000 shares issued).
2. A gain on revaluation of land resulted in a surplus of $5,000.
What total amount will be added to retained earnings at the end of the financial year?
Suggested solutions:
| $ | |
| Profit for the year | 30,000 |
| Less Dividend paid | 20,000 |
| Added to retained earnings | 10,000 |
| Surplus on revaluation | to have a separate account under shareholders equity |
To do the same topic again in ACCA F3 retained earnings
To do another topic in ACCA F3
2015 ACCA F3 RETAINED EARNINGS