PLC

Which of the following is NOT a feature of PLC

• PLC has limited liability

• PLC is owned by shareholders

• PLC is a service business

• PLC is run by board of directors

_____ are funds raised from the issuance of shares.

Calculate share capital on 30 June 2023 from the following:

1 July 2022: 100 000 ordinary shares of $2 each.

During the year, on 18 August 2022,

company issued another 50 000 shares at $3 each.

What is true of retained earnings?

• It is the profit for the year not distributed to shareholders.

• The account records only two items: Profit / Loss and dividends paid

• The dates shown in retained earnings account are only year-start and year-end dates.

• Retained earnings has only credit balances.

The double entry to record dividends declared and to be paid next month is

Dr: _____________________

Cr: ______________________

TINY Company has a dividends payable balance of $4 000 on 1 May 2022. On 18 May, the company paid this dividends by cheque. What is the double entry to record this payment?

• Dr Cash at bank, $4000

  Cr Dividends payable, $4000

• Dr Dividends payable, $4000

  Cr Cash at bank, $4000

• Dr Dividends, $4000

  Cr Cash at bank, $4000

• Dr Dividends, $4000

  Cr Dividends payable, $4000

Which of the following causes shareholders' equity to decrease?

• Issue of new shares

• Declaration of dividends

• Profit for the year

• Drawings by the owner

Retained earnings on 1 May 2022 was $4800. On 12 Sep 2022, the company declared and paid dividends of $3000. Which of the following are true?

• Cash at bank decreased by $3000

• Retained earnings decreased to $1800

• Dividends payable decreased by $3000

• Shareholders' equity increased by $3000

PQR Ltd has the following balances on 1 July 2022:
Share capital, 200 000 ordinary shares $500 000
Retained earnings $13 800

On 3 January 2023, the company issued another 100 000 ordinary shares at $2 each.

On 30 June 2023, the company made a profit of $20 000 and declared a dividend of $0.02 per share to be paid in August 2023.

a) What is the dividend declared?

b) What is the retained earnings balance on 30 June 2023?

c) What is the equity balance on 30 June 2023?

The following are balances taken from BB Pte Ltd on 1 April 2022:

Share capital, 300 000 shares, $400 000

Retained earnings $12 000

During the year, the company issued 50 000 shares at $2 each.

On 31 March 2023, the company earned a profit for the year, $24 000. The directors declared dividends of $0.10 per share.

Calculate the returns on equity. Give your answer to 2 decimal places.