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tabba past exam question (12/05) (small doubt)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › tabba past exam question (12/05) (small doubt)

  • This topic has 7 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • November 16, 2014 at 1:19 pm #210434
    mohammadbangash
    Member
    • Topics: 3
    • Replies: 11
    • ☆

    i have doubt in past question paper called tabba its cashflow question

    doubt is about dividend as retaining earning at start of year 850 and profit of the year 100ds and retaining earning end of the year is 2550 so dividend should be 1600 (2550-950) but they not taken any dividend in these question

    pvt companies doesnt pay dividends? as in question starting its written its pvt company

    November 16, 2014 at 9:31 pm #210544
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23316
    • ☆☆☆☆☆

    Private companies DO pay dividends

    Please look at your figures again

    Those that you have posted don’t make sense (what is 100ds)

    (they suggest that a dividend has been received by the company from the shareholders!)

    November 18, 2014 at 5:43 am #210845
    mohammadbangash
    Member
    • Topics: 3
    • Replies: 11
    • ☆

    Sorry i didn’t realise typo mistake the figure of profit is 100 only i hope it make sense now

    November 18, 2014 at 3:52 pm #211029
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23316
    • ☆☆☆☆☆

    Ok, I accept that 100ds is in fact $100

    850 brought forward + 100 retained for the year = 950. But you reckon the carried forward amount is 2,250

    That’s impossible unless the shareholders have paid a dividend to the company and that is an outrageous assumption.

    I have to apologise again and ask you to please tell me the retained earnings figure brought forward, the retained earnings figure carried forward and the figure for profit after tax from the bottom of the statement of income

    November 19, 2014 at 5:37 am #211175
    mohammadbangash
    Member
    • Topics: 3
    • Replies: 11
    • ☆

    retained earning brought forward =850 retained earning carried forward 2550 and profit of the year 100

    November 19, 2014 at 4:39 pm #211295
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23316
    • ☆☆☆☆☆

    That’s impossible – or I’m not being given all relevant information

    Hopefully I’ll get my hands on an exam kit that includes this old question tomorrow.

    Meanwhile, post again on this same thread so I can see that this is an issue still outstanding

    November 20, 2014 at 11:00 am #211582
    mohammadbangash
    Member
    • Topics: 3
    • Replies: 11
    • ☆

    i have soft copy of lsbf rk dec14 i can give you screenshot from there if its not against the rules dis question is also there in old bpp rk 2012d

    and i tried to check the question again if i am missing the relevant information but couldnt get any again

    November 21, 2014 at 10:50 am #211832
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23316
    • ☆☆☆☆☆

    Hi

    Did you think that the 1,600 transferred from the revaluation reserve was not worth mentioning to me?

    And did you even bother to look at the printed solution that details how the retained earnings have changed?

    Let me know if there continues to be any doubts

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