Answer To Accounting Test Question No. Ltd 1 On Limited Companies-Profit & Loss Appropriation Account

October 11th, 2008 Comments off
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The question on this limited company asked for a simple preparation of the Profit & Loss Appropriations where the dividends are considered.

Answer Paper to Accounting Test Question No.Ltd 1 on Limited Companies

Jim Ltd

Profit & Loss Appropriation for the year ended 31 December Year 8

$

$

Net Profit

41,500

Add: Retained profit b/d

17,300

58,800

Less: Appropriation

Interim ordinary dividend (given)

10,000

Proposed ordinary dividend(W1)

16,000

Proposed Preference dividend(W2)

6,000

32,000

Retained profit c/d

26,800

Workings:

W1 Proposed ordinary dividend=$200,000 x $0.08 =$16,000

W2 Proposed Preference dividend=$60,000 x 10% =$6,000

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Financial Accounting

 
 

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