Help with company accounts..calculating 'transfer to general reserves' figure?

Lollipop95

Hi guys
I'm studying financial accounting as one of my modules and doing company accounts as one of the q's as I've an exam on it next week!

I'm at it here and there's 2 figures confusing me:
Transfer to General Reserves
Preference Dividend Paid

I have the solution and question from our lecturer. In the trial balance it states that General Reserves are 80,000. However in the solution the GR are listed as 15,000

There's also 'ordinary dividend due'. I'm also not sure how to work that out..

Would really appreciate if anyone could tell me what figures you use to get the answers to those two, particularly 'Transfer to General Reserves' Thanks in advance!

Dell2009

You are going to need to give us a bit more to be able to help you. Maybe attach the question & solution.

Profit for the year - Dividends paid = Transfer to General Reserves. (maybe)

The ordinary dividend may be thrown in to confuse you as it may not need to be booked.

Synode

You don't record a dividend unless paid (if proposed then it gets noted in the directors report). They use to get booked in when proposed, but not anymore.

Your general reserves in the trial balance (80,000) will not include the current years profits (less dividends).

As Dell2009 says above, transfers to general reserves are normally profits less dividends paid.