Question

The following information pertains to X Ltd:
(i) Equity share capital called-up $Rs.5,00,000$
(ii) Calls-in-arrear $Rs.40,000$
(iii) Calls-in-advance $Rs.25,000$
(iv) Proposed dividend $12.5$%
Amount of dividend will be ______________.

• A. $Rs.61,800$
• B. $Rs.72,750$
• C. $Rs.57,500$
• D. $Rs.60,000$

Answer 1

Answer: (C)

$Rs.57,500$

Equity share capital called - up - calls in arrear

5,00,000 - 40,000 = 4,60,000

4,60,000 x 12.5% = 57,500.