Waec Model Questions Vol1 2019 Financial Accounting Question 11
Practice objective / multiple choice question 11 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
ABC Ltd issued 10,000 ordinary shares with a nominal value of ₦500 each. At the beginning of the year retained earnings were ₦2,000,000. During the year the profit before tax was ₦3,600,000 and tax is charged at 30% of profit before tax. The company writes off a prior‑year loss of ₦500,000 against retained earnings. It also transfers 10% of profit after tax to a revaluation reserve and declares a dividend equal to 20% of the nominal value of each share. Determine (a) the amount of profit available for dividend after the revaluation transfer, and (b) the retained earnings balance at the end of the year.
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About This Question
This is Waec Model Questions Vol1 2019 Financial Accounting Question 11. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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