Determine company retained earnings for the financial year

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Question - The information represents the transactions of Granny Plc for the financial year ended 30th June 2021. The company made sales of £120,000 during the financial year ending 30 June 2021. The company had an opening stock of goods worth £15,000 and purchased new stock worth £100,000 during the year. The previous year stock remaining in the warehouse had a worth £60,000.

In the conduct of its business, the company also incurred the following expenses:

Wages 25,000

Heating 1,000

Rent 4,000

Business Rate 6,000

Postages 1,500

Depreciation 3,500

Taxation paid was 4,000 and interest paid on loan was 2,000.

The company paid dividend of 7,000 to his shareholders

Required - Using the above information, determine the company's retained earnings for the financial year ended 30th June 2021.

Reference no: EM133124926

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