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Dividends paid – cash flow – chapter 19

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Dividends paid – cash flow – chapter 19

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
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    Posts
  • November 5, 2015 at 8:52 pm #280704
    Chris
    Member
    • Topics: 8
    • Replies: 35
    • ☆

    Are we ok to assume that dividends in the 2008 year payables would have been paid within 2009?

    November 6, 2015 at 6:58 am #280744
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    Absolutely, YES

    And watch out for this little trick ….

    Retained earnings in the statements of financial position should have move from last year to this year by this year’s figure.

    But your examiner has started getting cute! Say RE last year was 15,000 and RE this year is 18,000 and Profit after tax this year is 5,000

    There MUST have been a 2,000 dividend!

    He won’t flag this in the question so you need to be aware of it

    OK?

    November 6, 2015 at 7:17 am #280747
    Chris
    Member
    • Topics: 8
    • Replies: 35
    • ☆

    You beauty! I do remember this from your lectures but thank you for the reminder!

    Have yourself a super jolly weekend Mike!

    November 6, 2015 at 8:10 am #280773
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22698
    • ☆☆☆☆☆

    I certainly shall, thank you

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