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ScotlandAccountingQuick questions

Preparing Financial Accounting Information

Quick questions on Limited company final accounts - SQA Higher Accounting

3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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A company has 50,000 £1 ordinary shares and declares a 12p dividend. Calculate the ordinary dividend. [1 mark]
What is q2?
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Profit available is £80,000, total dividends £14,000 and the transfer to general reserve £10,000. Calculate retained earnings carried forward. [2 marks]
What is q3?
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State whether debenture interest is an expense or an appropriation, and why. [2 marks]

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