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.
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Hello sir
Dividend payable at 1st January 2015-$ 80
31st Dec2015 -$116Retained earnings
1st January 2015-$36
31st Dec 2015-$958 percent redeemable preference share $1 each. At 1st January2015- $360.
31st Dec 2015-$240Profit after tax
1st January 2015-$124
31st Dec 2015 – $175Dividend paid amount?
Why are you setting me a test question?
There must be an answer in the same book in which you found the question, and you should use this forum to ask about whatever it is in the printed answer you do not understand.
We are not here to simply provide answers to test questions 🙂
As you have typed it, there is not enough information (and if you have typed it correctly then it is a badly written question anyway because ‘profit after tax 1 January 2015’ does not mean anything – I can only assume that the profit figures are for the years 2015 and 2016.)
The ordinary dividend paid must have been the 80 that was owing at the start of the year.
(the 116 is still owing and must be the dividend for 2016 because it explains the change in the retained earnings).It is impossible to know what the preference dividend paid was without knowing when the repayments of some of the preference shares took place.
Where did you find the question? And do they not show their workings in the answer?
I found in question bank of Becker.
There is no working for dividend paid but answer is $61 ( $80 – $19)
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