Gce Model Questions Vol1 2018 Financial Accounting Question 8
Practice objective / multiple choice question 8 from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
The profit and loss account for the year shows a gross profit of \(\text{₦}240,000\) and operating expenses of \(\text{₦}90,000\). Interest expense is \(\text{₦}12,000\) and tax expense is \(\text{₦}30,000\). The company has an ordinary share capital of \(\text{₦}200,000\) and declares a dividend at \(5\%\) of the share capital. It also transfers \(10\%\) of profit after tax to a general reserve. Determine the amount transferred to retained earnings.
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About This Question
This is Gce Model Questions Vol1 2018 Financial Accounting Question 8. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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