I recall from F7 we used to add profit for the year in retained earnings. I am doing SBR after one year's gap. However in this sum they have not added profit for the year which we calculated in income statement, in the reserves/ retained eaenings. Could you please exaplin me the reason behind this or A I missing something?
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Holmes and Deakin BPP kit Question 24
5y ago#1PLEASE USE THREAD HEADER SUCH AS 'RETAINED EARNINGS'
No - RE should include RE b/f and profits for the year.
Bear in mind that you will not be asked to produce an entire consolidation, merely to explain certain adjustments.
So basically first we need to do income statement get the profit and add to retained earnings right?
sir can you look into this question.. it is in the study text.. Activity 5 of Basic Groups (Chapter 11). In this they have completly ignored dividend and they haven't transfered anyand profit to retained earnings. I am so confused. I can email you or type the question if you need. thank you sir
5y ago#4We don't really offer a debrief of questions from other learning providers unless they are past exam questions.
I have looked at Activity 5 in BPP book which is absolutely fine. Holmes and Deakin is a very obscure question and is not from a past exam.
Please remember that proving retained earnings has not come up in the last 3 years, and if it ever does come up, it will come up for 2 marks.
I think you should forget Holmes and focus on recent past exam questions which are in a completely different style.
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