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Chapter 17
Example T-account working to derive missing information
Retained earnings
Date Details $ Date Details $
Dividend paid X Bal b/fwd Opening SOFP X
Bal c/fwd Closing SOFP X Profit after tax for year X
––– –––
X X
––– –––
The dividend paid in the year will be a ‘financing activity’ cash outflow.
Tutor notes guidance – discussion points
Take students through TYU 6 from chapter 19 of the Study Text
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