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In the question Dexon Co requirement viii is as follows:
In May 20X6 a dividend of $0.04 per share was paid. In November 20X6 (after the rights issue in item (vii) above) a further dividend of $0.03 per share was paid. Both dividends have been correctly accounted for in the above statement of financial position.
I adjusted the dividend (added) in the opening balance of retained earning while in the question they added it to the profit for the year to calculate adjusted profit for the year.
My assumption was this that the as the dividend was paid before the year end and during the year end we are to adjust the the opening balance of retained earning.I need help in understanding if I’ll be rewarded marks for this or just only if I adjust the profit for the year instead of opening balance
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