Neco 2021 Financial Accounting Question 30

XYZ Ltd. provides the following information for the year ended 31\,December\,2021:\n\n- Opening retained earnings (1\,January\,2021): \u20A6 500,000\n- Net profit for 2021 as per the trial balance: \u20A6 250,000\n- Interim dividend paid: \u20A6 30,000\n- Final dividend paid: \u20A6 50,000\n- An expense of \u20A6 20,000 was omitted from the 2020 profit‑and‑loss account, so the opening retained earnings should be reduced by this amount.\n- Inventory was overstated by \u20A6 15,000 in 2020, resulting in an overstatement of retained earnings that must be corrected in 2021.\n- New shares were issued at a premium of \u20A6 40,000 (the premium is transferred to the share‑premium account).\n\nDetermine the corrected retained earnings balance as at 31\,December\,2021.