Question

The following information pertains to X Ltd.:
I. Equity share capital called up Rs 10,00,000
II. Calls in arrear Rs 80,000
Ill. Calls in advance Rs 50,000
IV. Proposed dividend 15%
The amount of dividend payable is:

• A. Rs 1,50,000
• B. Rs 1,57,500
• C. Rs 1,45,500
• D. Rs 1,38,000

Answer 1

The correct option is D Rs 1,38,000

Dividend percentage is calculated on paid up capital = called up capital - call in arrears = 10,00,000 - 80,000 = 9,20,000

9,20,000 x 15% = 1,38,000.