Question

The following information pertains to X Ltd.
Called-up share capital = Rs. 5,00,000
Calls-in-arrear = 40,000
Calls-in-advance = 25,000
Proposed dividend = 15%
The amount of dividend payable is ________.

• A. Rs. 75,000
• B. Rs. 72,750
• C. Rs. 71,250
• D. Rs. 69,000

Answer 1

The correct option is D Rs. 69,000

Dividend is payable at the end of the financial year upon such share which money is made. Calls in advance means the amount which is received in advance before the amount is due from shareholders and calls in arrears means which money that is not given by public to company earlier and is due. To calculate the dividend payable we have to subtract calls in arrear from Share capital so, Rs 5,00,000 - Rs 40,000 =4,60,000. 15 % is the proposed dividend, hence, amount of dividend payable is Rs 69,000