Exam 6: Company Accounts

Millennium Ltd increased its retained profits from £320,000 at 1 January 2024 to £400,000 at 31 December 2024. If the company paid dividends of £35,000 for the year ended 31 December 2024, then the profit for the year was:

Which one of the following would be a reserve found in the equity section of a company's statement of financial position?

Which of the following is NOT deducted in arriving at a company's profit for the year?

Which of the following would NOT be an entry in a company's statement of changes in equity?

Choi Ltd issued 500,000 £1 shares at £2.20 per share. Which of the following will occur as a result of the share issue?

Which of the following would be a current asset of a limited company?

Lidia Ltd had a property on its statement of financial position at 30 June at a net book value of £720,000. The property was revalued at that date at £860,000. What will be the effect on the company's revaluation reserve?

Extracts from Katherine's statements of financial position are given below: The amount raised by the ordinary share issue during the year was:

The accounts for Mark Ltd for the year ended 30 June 2024 show a profit for the year of £145,000. Retained profits at the beginning of the year amounted to £660,000 and an ordinary dividend of £30,000 was paid during the year. What will be the retained profits at 30 June 2024?

Which one of the following statements regarding the share premium account is true?