Question

Equity share capital called up rs 5,00,000, calls in arrears rs 40,000, calls in advance rs 25,000 proposed divided 12%.the amount of dividend payable will be

Answer 1

Answer:

your answer is Rs.69,000

Explanation:

Dividend is payable at the end of the financial year upon such share which money is made. Calls in advance mean the amount which is received in advance before the amount is due from shareholders and calls in arrears mean which money that is not given by the public to the company earlier and is due.

To calculate the dividend payable we have to subtract calls in arrear from Share capital.

Amount of share capital for dividend calculation:

= Rs 5,00,000 - Rs 40,000

=4,60,000.

Proposed dividend = 15% x 4,60,000 = Rs. 69,000