Assume the opening balance of equity (01/07/2014)is $1,400,000.During 2014/15,there was a share issue of $540,000,dividends declared of $280,000 and a profit for the year of $710,000,What is the equity balance on the 30/06/2015?

Question

Quizplus · Accepted Answer

The equity balance on 30/06/2015 can be calculated as follows:
Opening balance of Equity (01/07/2014) = $1,400,000
Add: Share issue during the year = $540,000
Total Equity = $1,940,000
Less: Dividends declared during the year = $280,000
Profit for the year = $710,000

Therefore, the closing balance of equity on 30/06/2015 = $1,940,000 + $710,000 - $280,000 = $2,370,000. Hence, the correct answer is B.

Assume the Opening Balance of Equity (01/07/2014)is $1,400,000