Limited Company-preference shares

Yes - that is correct :-)

Thanks John

You are welcome :-)

Please can you explain this question A company has following share capital $0.25 ordinary share capital $2000000 8% irredeemable preferance shate capital. $800000 6% reedeemable prefereance share capital. $500000 It paid interim dividend of $0.3/ share on july 2008 and announced a final dividend on ordinary shares of $0.2/ on 2nd febuary 2009. Half of the dividend on preferance shares was paid before year ended 31st dec 2008. What will be the total amount of dividend charged to SOCIE for year ended 31 dec 2008?

For the ordinary shares you will bring in just the interim dividend (not the final dividend because it was only announced after the year end). For the irredeemable preference shares you will being in the full 8% (the fact that some was not paid at the year end does not matter, it is still certain and the amount owing will also appear in the SOFP as a liability). For the redeemable preference shares you will bring in nothing because it is treated like debt borrowing and will appear on the SOPOL as finance charge.

Thanks alot

You are welcome :-)