Gce Model Questions Vol1 2020 Financial Accounting Question 44
Practice objective / multiple choice question 44 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
A company's balance sheet as at 31 December shows the following (all figures in £): Plant £120,000; Accumulated depreciation £30,000; Goodwill £50,000 (amortised straight‑line over 10 years, 2 years have elapsed); Stock £25,000; Debtors £40,000; Cash £15,000; Creditors £35,000; Bank loan £20,000 (interest 5 % per annum, accrued but not yet paid). Equity comprises Share capital £100,000; Share premium £20,000; Retained earnings — unknown. The profit before tax for the year is £18,000 and tax is charged at 30 %. No dividends were paid. Determine the amount of retained earnings shown in the balance sheet.
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About This Question
This is Gce Model Questions Vol1 2020 Financial Accounting Question 44. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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