Waec Model Questions Vol1 2018 Financial Accounting Question 11
Practice objective / multiple choice question 11 from the 2018 Waec Model Questions Vol1 Financial Accounting examination.
A company issued 10,000 ordinary shares at ₦500 each, with a share premium of ₦100 per share. During the year the company reported a gross profit of ₦2,200,000. Operating expenses (excluding depreciation) were ₦800,000. Plant and equipment cost ₦1,200,000 and had accumulated depreciation of ₦300,000 at the start of the year; depreciation is straight‑line over 5 years with no residual value. Interest on a loan was ₦120,000 and the tax rate is 30% on taxable profit. The company also transferred ₦150,000 to a general reserve as required by law. What amount is transferred to retained earnings at the end of the year?
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About This Question
This is Waec Model Questions Vol1 2018 Financial Accounting Question 11. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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