Gce Model Questions Vol1 2017 Financial Accounting Question 1
Practice objective / multiple choice question 1 from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
Company XYZ prepared the following trial balance (amounts in £'000): Sales 1,200; Opening stock 150; Purchases 720; Closing stock 180; Operating expenses 210; Interest expense 30; Tax expense 45; Depreciation—building 40; Depreciation—machinery 35; Goodwill (carrying amount) 50; Provision for doubtful debts 20. Trade receivables at year‑end are 200. The company's policy is to amortise goodwill at \(10\%\) per year and to set the provision for doubtful debts at \(5\%\) of trade receivables. Share capital is 300 and retained earnings brought forward are 80. Calculate the amount of retained earnings to be shown in the statement of financial position (in £'000).
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About This Question
This is Gce Model Questions Vol1 2017 Financial Accounting Question 1. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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