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WAEC Financial Accounting 2003 Question 8

Question 8

Company Accounts

Net profit for the year N75,000
Ordinary share capital of 50 kobo each N65,000
10% Preference shares of 50 kobo each N100,000
Preference dividend for the year is

  1. A.N20,000
  2. B.N10,500
  3. C.N10,000
  4. D.N7,500
Show the answer and explanation

Answer: C (N10,000)

Explanation

10% × N100,000 = N10,000.