Maximum dividend

Harish (CS Executive) (386 Points)

16 May 2010  

  1. The balance sheet of a company showed the following balances at the end of the year:  General Reserve Rs. 500000, share premium account Rs.50000, Premium on issue of debentures account Rs. 20000, dividends equalization fund Rs. 40000, Surplus on revaluation of assets Rs. 30000, Profit and loss account (Cr.) Rs. 60000.  Maximum amount available for distribution as dividend to the shareholders of the company will be?  
  2. What will be your answer if dividend is replaced by bonus shares in the question above?