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sir, plz help me with these dividend stuffs.. where do these following dividend are adjusted in financial statements.?
1. redeemable preference dividend paid (RPD)
2.IRPD paid
3.ordinary dividend paid
4interim dividend paid ( all these are paid before accounting period )5. redeemable preference dividend payable
6.IRD payable
7.Ordinary dividend payable1 finance cost in SOFP
2 Dividend in SOCE
3 Dividend in SOCE
4 Dividend in SOCE
5 current liability in SOFP
6 current liability in SOFP
7 Provided declared before the year end then current liability in SOFP (if only proposed then nowhere)Sir:
Question #2
At 31 December 2004 a company’s capital structure was as follows:Ordinary share capital. 125,000
500,000 shares of .25c each
Share premium account. 100,000In the year ended 31 December 2005 the company made a rights issue of 1 share for every 2 held at $1 per share and this was taken up in full. Later in the year the company made. Bonus issue if 1 share for every 5 held, USING THE SHARE PREMIUM ACCOUNT FOR THE PURPOSE.
What was the capital structure at December 31, 2005?
My calculations:
# shares. Share capital. Share premium
500,000. 125,000. 100,000
250,000. X .25. 62,500. 187,500. (250,000 @.75)Where do I go from here. And, given the answer, I must have done something wrong.
Thanks
You now have 750,000 shares, so a bonus issue of 1 for 5 means issuing another 150,000 shares. Share capital will increase by 150,000 x 0.25, and share premium will decrease by the same amount.
1.sir, what is the double entry for redeemable preference dividend paid?
2.Which of the following statements about the financial statements of limited liability companies are
correct according to International Financial Reporting Standards?
1 In preparing a statement of cash flows, either the direct or the indirect method may be used.
Both lead to the same figure for net cash from operating activities.
2 Loan notes can be classified as current or non-current liabilities.
3 Financial statements must disclose a company’s total expense for depreciation, if material.
4 A company must disclose by note details of all adjusting events allowed for in the financial
statements.
A 1, 2 and 3 only
B 2 and 4 only
C 3 and 4 only
D All four itemssir, why option 4 not correct?
1. Cr Cash; Dr preference dividend.
(The dividend is shown in the SOFP as a finance charge because they are redeemable)2. It is only non-adjusting events that are disclosed by note (if material). For adjust events we change the statements and we do not write a note saying that we have changed them.
sir, redeemable preference dividend paid shown in SOCI or in sOFP? until now, I hab been adjusting this in SOCI but i got anwer correct.. how?? 🙁
SOPOL as a finance charge
It only appears in SOFP if it has not been paid and is still owing.
sir, dividend payable for ordinary shares and preference shares adjusted in SOCIE or not?
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