Accounting Test Question No Ltd 2 On Limited Companies

October 11th, 2008 Comments off
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Below is a straight forward question on Profit & Loss Appropriation Account.

Question:

Jim Ltd made a net profit of $900,000 for the financial year ended 31 December 2007. Retained brought forward is $50,000.

(a)    The company issued out 100,000 10% preference shares of $1 each and 200,000 ordinary shares of $2 each

(b)     Interim dividend paid to preference shareholders are $5,000 and to ordinary shareholders are $100,000

(c)    The directors recommend a final dividend of $0.50 per unit to the ordinary shareholders and the remaining preference share dividends.

(d)    Transfer $60,000 to fixed assets replacement reserve

Required:

Profit & Loss Appropriation for the year ended 31 December 2007

[ REFER ANSWER ]

 

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Financial Accounting

 
 

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