Chapter 10, example 5 ‘retained earnings brought forward’

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October 30, 2012 at 8:27 pm #54948
marta0101
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Hi Mike,
Im trying to do this question from the course notes.
When im checking the answer working W3b Retained earnings c/f there is a divided receivable of €6,000.
Can you please explain how dividend was calculated?
Regards,
Marta
October 31, 2012 at 10:45 am #106234
neilsolaris
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I hope you don’t mind me having a go at answering this, but it’s good practice for me too!
It looks to me that Ansis paid a dividend of $8,000, as shown in the statement. As Didziz has a 75% shareholding in Ansis, it follows that Didziz should receive 75% of this dividend. Therefore, $8,000 * 75% = $6,000.
October 31, 2012 at 10:34 pm #106235
marta0101
Member
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Oh really?
And why we didnt take $17,000 from Didzis?
November 1, 2012 at 6:49 am #106236
MikeLittle
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Because the Didzis dividend would be reflected within the Statement of Changes in Equity and NOT in the Statement of Income
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