Question

Find the Dividend payable, if called up capital is $Rs.5,00,000$, calls in arrears $Rs.50000$, calls in advance $Rs.20000$ and proposed dividend $20$%.

• A. $Rs.90,000$
• B. $Rs.1,00,000$
• C. $Rs.94,000$
• D. $Rs.9,60,000$

Answer 1

The correct option is A $Rs.90,000$

Dividends are always paid on the paid up capital and no extra dividends are paid on advance calls.

Amount on which dividends are paid = 5,00,000 - 50,000 (Calls in arrears)

= 4,50,000

Dividend to be paid = 4,50,000 x 20%

=Rs-90,000