passwella.
Menu

WAEC Financial Accounting 2006 Question 13

Question 13

Company Accounts

Ordinary shares of N1 each N500,000
8% preference shares of N1 each N200,000
Interim dividends paid: ordinary shares N40,000; preference shares N12,000
Profit for the year N100,000
The dividend per ordinary share for the year is

  1. A.N0.88 kobo
  2. B.N0.40 kobo
  3. C.N0.20 kobo
  4. D.N0.17 kobo
Show the answer and explanation

Answer: D (N0.17 kobo)

Explanation

Total ordinary dividend = 40,000 + 44,000 = 84,000 on 500,000 shares ≈ N0.17 per share.