DFS June 05 1.1 a

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joerd84
joerd84 Registered Posts: 56 Regular contributor ⭐
Hi

I'm having a bit of trouble with the dividends on the income statement for this question. It says in the answers that the final dividend is 1600 and the interim dividend is 2400 which comes to 4000 in dividends. On the trial balance I can only see the one dividend for £1600. Can anyone tell me where i'm going wrong?

Thanks

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  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
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    We have been advised at our college not to practice from past exam papers before June 2006.

    The IAS and any canges to exams due to IAS are effective from June 2006 exam papers.

    Dividends were assessed in drafting of the profit & Loss a/c and Balance sheet prior to 2006 exams. However, Dividends are only shown in the statement of equity since.

    the ansewer that your question is the following journal

    Debit the dividend a/c with £2400 (total 1600+2400=4000) taen off in P&L a/c
    Credit the divident Payable a/c £2400 (current liability a/c in Balance sheet)
  • joerd84
    joerd84 Registered Posts: 56 Regular contributor ⭐
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    ok thanks, i wont do any of the older ones then.

    The problem I was having is I couldn't see where the dividend for £2400 came, there is only one dividend on the trial balance and that is for £1400. Suppose it doesn't matter if it's not going to come up on the exam.
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