Neco Model Questions Vol1 2023 Financial Accounting Question 38
Practice objective / multiple choice question 38 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
Alpha Ltd. prepared a statement of changes in equity for the year ended 31 December 2023. The opening balances were share capital \(\text{₦}2,000,000\) and retained earnings \(\text{₦}500,000\). During the year the company: (i) issued new ordinary shares at a premium, receiving \(\text{₦}800,000\) cash for which the nominal value of the shares is \(\text{₦}500,000\); (ii) reported profit before tax of \(\text{₦}600,000\) and paid income tax at 30%; (iii) declared and paid a dividend of \(\text{₦}150,000\); (iv) transferred \(\text{₦}50,000\) to a revaluation reserve from other comprehensive income. What is the closing balance of retained earnings at year‑end?
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About This Question
This is Neco Model Questions Vol1 2023 Financial Accounting Question 38. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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