Question

(b) Silsford Ltd provided the following information.
6% Preference shares of $1 each - $ 50000
Ordinary shares of $1 each- $ 80000
During the financial year ended 31 December 20-9 an interim
dividend of $2400 was paid on the ordinary shares.
The profit for the year ended 31 December 20-9 was $33 000.
On 31 December 20-9 it was decided to:
1. pay the dividend due on the preference shares
2. pay a final dividend of 5% on the ordinary shares.
Calculate
(i) The total preference share dividend (in $) for the year ended 31
December 20-9
(ii) The total ordinary share dividend (in $) for the year ended
31 December 20-9
(iii) The profit retained in the year ended 31 december 20-9​

Answer 1

Answer:yes

Explanation:

A) preferred dividend= par value*number of dividends*dividend rate.

50000*0.06*1= 3,000₹

B) 2400+(5%*80000)=6400₹ Ordinary dividends

C) retained profit= 33000-3000-6400= 23600₹ closing retained earnings.