FF Ltd declared and paid $150 000 in dividends during the financial year ending 31 December. Closing retained profits as at 31 December were $860 000. What was opening retained profits at the beginning of the financial year on 1 January, if FF Ltd made a loss of $180 000 for the year ended 31 December?
A) $530 000
B) $860 000
C) $890 000
D) $1 190 000

Question

Quizplus · Accepted Answer

To find the opening retained profits, we use the formula: Opening Retained Profits = Closing Retained Profits + Loss for the Year + Dividends Paid. Substituting the given values: $860,000 + $180,000 + $150,000 = $1,190,000.

FF Ltd Declared and Paid $150 000 in Dividends During