Retained profits of Livermore Pty Ltd at 1 July 2018 were $5 500. The accounting records for year ended 30 June 2019 showed the following information: What were Livermore's retained profits at 30 June 2019?

Question

Retained profits of Livermore Pty Ltd at 1 July 2018 were $5 500. The accounting records for year ended 30 June 2019 showed the following information:  What were Livermore's retained profits at 30 June 2019?

Quizplus · Accepted Answer

Retained profits at 1 July 2018 = $5 500
Add: Net profit after tax for the year ended 30 June 2019 = $2 750
Deduct: Dividends paid during the year ended 30 June 2019 = $500
Retained profits at 30 June 2019 = $5 500 + $2 750 - $500 = $7 250. Therefore, the correct option is B.

Retained Profits of Livermore Pty Ltd at 1 July 2018