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Milford, a limited liability company, has an issued share capital of 10,000,000 ordinary shares of 50c each. At 31 December 20X8 the company proposed a dividend of 3.5c per share; in September 20X9 it paid an interim dividend of 1.8c per share; and at 31 December 20X9 it proposed a dividend of 3.75c per share.
What is the total amount of dividends paid in year ended 31 December 20X9?
180,000
375,000
530,000
555,000i chose the answer to be 180,000 because i was taught that to ignore proposed & approved as it will not affect my statement and only add paid/declared.
but the answer given was 530,000 which included a proposed dividend.
please advise and clear my doubts i am very confused.
In future please ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
It id because the dividend that was proposed at the end of 20X8 will have been paid during 20X9.
(The dividend proposed at the end of X9 will not be paid during X9).
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