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Use the following information to answer the given question \(\begin{array}{c|c} & ₦ \\ \hline \text{ordinary...

Accounts - Principles of Accounts
WAEC 2006

Use the following information to answer the given question
\(\begin{array}{c|c} & ₦ \\ \hline \text{ordinary shares of ₦1 each} & 500,000\\ \text{8% preference shares of ₦1 each} & 200,000\\ \text{Interim dividends paid} & \\ \text{- ordinary shares} & 40,000\\ \text{-preference shares} & 12,000\\ \text{profit for the year} & 100,000\end{array}\)
If no profit is to be retained, proposed preference shares dividend is
  • A. ₦28,000
  • B. ₦16,000
  • C. ₦12,000
  • D. ₦4,000
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Correct Answer: Option B
Explanation
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