JAMB Principles of Accounts 1995 Question 40

Yakubu (Nigeria) Limited (Extract) Balance Sheet as at 31st December, 1993. (Authorized ₦; Issued ₦)
Ordinary shares: ₦100 000; ₦80 000
10% preference shares: ₦30 000; ₦20 000
Share premium ₦20 000
Profit and loss A/C ₦13 000
Trade creditors ₦30 000
Accruals ₦5 000
Stock ₦10 000
Debtors ₦40 000
Bank ₦25 000
If a 10% dividend is approved, what is the dividend payable to ordinary shareholders?

1. A.₦13 000
2. B.₦11 300
3. C.₦10 000
4. D.₦8 000