The authorized capital of M Ltd. consists of both cumulative preference shares and equity shares. Each 5% cumulative preference share has a par value Rs 100. Each equity share has a par avlue Rs 10. During the year April 01, 2005 to March 31, 2006, the cumulative preference share capital balance was Rs 2,00,000 and the equity share capital balance was Rs 5,00,000.
If dividend declarations totalled Rs 8,000 and Rs 15,000 in the year 2004-05 and 2005-06 respectively, the dividends allocated to the equity shareholders in the year 2005-06 = ?
a. Rs 3000
b. Rs 5000
c. Rs 10000
d. Rs 12000
How do we solve this????
CAclubindia
