The following information pertains to X Ltd. (1) Equity share capital called up TK. 10,00,000; (2) Calls in arrear TK. 50,000 (3) Calls in advance TK. 20,000 (4) Proposed dividend 10% . The amount of proposed divided payable is -

The following information pertains to X Ltd. (1) Equity share capital called up TK. 10,00,000; (2) Calls in arrear TK. 50,000 (3) Calls in advance TK. 20,000 (4) Proposed dividend 10% . The amount of proposed divided payable is - Correct Answer TK. 95,000

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A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk.1 per value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend ?