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Discuss and download IPCC exam question paper May 2014
hey the sales ratio of question2(b)
4,80,000/6= 80,000
80,000*3= 2,40,000(pre)
24,00,000-2,40,0000=21,60,000(post)
sales ratio is 1:9
all the best!!!
Below is the suggested answer for question no. 2(a).
We need not pay equity dividend in case of insufficient profits
|
Current year Profit |
1,000,000 |
|
Less: Depreciation |
37,500 |
|
Tax provision |
120,000 |
|
Balance available for appropriations |
842,500 |
|
Less: Transfer to reserve (842,500 * 25%) |
210,625 |
|
Staff bonus provision (75,000 X 100 X 20% X 10%) |
150,000 |
|
Balance available for distribution of dividend |
481,875 |
|
Less: Preference dividend (12,000 X 100 X 15%) |
180,000 |
|
Balance |
301,875 |
|
Less: Carried forward profit (12,000 X 100 X 14%) |
168,000 |
|
Balance for additional dividend |
133,875 |
|
Distribution of additional dividend |
|
|
Balance for additional dividend |
133,875 |
|
To preference share holders (1/3) |
44,625 |
|
To equity share holders (2/3) |
89,250 |
|
Net balance of P&L |
|
|
Op. balance in P&L |
150,000 |
|
Carried forward current year profit |
168,000 |
|
Net balance in P&L |
318,000 |
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