Question

For the year ended 31st March, 2020 the profit of Vanshikha Ltd. Before tax amounted to Rs 3600000. There was a Credit Balance of Surplus in the statement of profit and loss of Rs 2080000 brought forward from the previous year. The paid up share capital considered of 1000000 Equity shares of Rs 10 each and 100000, 7% Preference shares of Rs 100 each. The company make a provision of Rs30% for income tax. The company paid dividend for 2018-19, Rs 1500000 during the year. Following appropriations were proposed by the company after the date of Balance Sheet: i)To pay dividends on Preference Shares ii)To pay final dividend @ 10% to equity shareholders, iii)To Transfer 10% of the current year profit to general Reserves, iv)Provide corporate dividend tax @ 20.35% Prepare Notes to Account in respect of reserve and surplus as per schedule III of the companies Act. 2013. Show how the proposed dividend and Corporate Dividend Tax are to be shown. Also show how these items will appear in s Balance Sheet as at 31st March, 2020.

Answer 1

Answer:

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Explanation:

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