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WAEC Financial Accounting 2019 Question 13

Question 13

Company Accounts

The directors of Olu Ltd. recommended a dividend of 10% on 1,000,000 ordinary share capital of GH¢2.00 each. The amount of dividend declared is

  1. A.GH¢200,000.
  2. B.GH¢100,000.
  3. C.GH¢20,000.
  4. D.GH¢10,000.
Show the answer and explanation

Answer: A (GH¢200,000.)

Explanation

1,000,000 shares × GH¢2 = 2,000,000; 10% = GH¢200,000.