Paper 2 · November 2015 · Limited Companies
Kwaedza Limited's net profit for the year ended 31 December 2013 was $436 000. After transferring $200 000 to the General Reserve and providing dividends totalling $225 000 (preference $120 000, ordinary interim $65 000, ordinary final $40 000), what was the retained profit for the year (before adding the opening Profit and Loss balance of $270 000)?
A$11 000
B$225 000
C$236 000
D$281 000
Explanation
$436 000 - $200 000 - $225 000 = $11 000.
Derived from ZIMSEC Principles of Accounts 7112/2 Paper 2, November 2015, Q4