Help plz Company A/cs

CPT 1330 views 4 replies

Akash

CA Final Article Assistant

1671 Points Joined January 2011

1.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 value 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 share holders in the year 2005-06 = ?

2.T Ltd. proposed to issue 6,000 equity shares of Rs.100 each at a premium of 40%. The

minimum amount of application money to be collected per share = ?

Thanxxxxxxxxxxxxxxxx in advance

Replies (4)

mridul savio Pinto

articled trainee

1477 Points Joined July 2010

i got the answer for your ist question as 5000 ...i , e 200000*5% =10000 .. remaining is of equity share holders ...... i am not sure

Guest

Simple, 1. Anwers is 3000, as preference dividend for the year 2004-05 should have been (5% * 2lac) 10,000 but the company declares dividend only 8000. Since its a cumulative preference share so the balance dividend due (10000-8000) 2000 will be carry forward to the next year.

In next year the preference share holders will get (10000+2000) Rs.12000 as dividend .. and the company declares Rs.15000 as dividend . Hence the remaining dividend is for equity share holders i.e 150000-12000=Rs. 3000

2. Since the application money should not be less than 5% of the nominal value of the shares , the ans will be 100 * 5% =Rs.5

CA ADITYA SHARMA

CA IN PRACTICE

16719 Points Joined May 2011

Originally posted by : vinnzz
	Simple, 1. Anwers is 3000, as prefrence dividend for the year 2004-05 should have been (5% * 2lac) 10,000 but the company declares dividend only Rs.8000. Since its a cumulative prefrence share so the balance dividend due (10000-8000) Rs.2000 will be carry forward to the next year. In next year the prefrence share holders will get (10000+2000) Rs.12000 rupees as dividend .. and the company declares 15000 as dividend . Hence the remaining dividend is for equity share holders i.e 150000-12000=Rs. 3000 2. Since the application money should not be less than 5% of the nominal value of the shares , the ans will be 100 * 5% =Rs.5