When a company declares and pays final dividend of OMR 70,000. The effect on the Financial statement items will be:

a.

Only retained earnings will reduce by OMR 70,000

b.

Only bank balance will reduce by OMR 70,000

c.

Reduction in the retained earnings and bank balance by OMR 70,000 and the netprofit will reduce by OMR 35,000

d.

Reduction in the retained earnings and bank balance by OMR 70,000