Cricket Ltd has the following items in its accounting records for the current year:
1. 200,000 $2 issued and paid up ordinary shares
2. Opening Retained earnings $40,000
3. Dividends declared and paid during the year $20,000
4. Transfer from Retained earnings to General reserve $15,000
Required:
(a) Prepare journal entries to record items 3. and 4.
(b) Show the Note to the financial statements providing details of the movements in the Retained earnings account during the year
(c) Prepare an extract from the equity section of Cricket Ltd's statement of financial position at the end of the year.

Question

Quizplus · Accepted Answer

The Answer of Cricket Ltd has the following items in its accounting records for the current year:
1. 200,000 $2 issued and paid up ordinary shares
2. Opening Retained earnings $40,000
3. Dividends declared and paid during the year $20,000
4. Transfer from Retained earnings to General reserve $15,000
Required:
(a) Prepare journal entries to record items 3. and 4.
(b) Show the Note to the financial statements providing details of the movements in the Retained earnings account during the year
(c) Prepare an extract from the equity section of Cricket Ltd's statement of financial position at the end of the year.

Cricket Ltd Has the Following Items in Its Accounting Records