1.a) Recycled Plastics Ltd is a company with the following capital structure: Authorised share capital P Ordinary shares of P1 100 000 5% Preference shares of P1 100 000 There were no changes to the number of shares in issue during the year. The retained earnings brought forward on 1 May 2014 were P8000. During the year ended 30 April 2015, the company made a profit of P40 000. Issued share capital P 50 000 80 000 On 30 April 2015 it was agreed to effect: 1. Transfer P20 000 to the general reserve 2. Payment of preference share dividend 3. Payment of final dividend of P0.05 per share on the ordinary shares. An interim dividend of P0.02 per share had been paid to the ordinary shareholders on 31 December 2014. Required: Prepare the profit and loss appropriation account for the year ended 30 April 2015.
1.a) Recycled Plastics Ltd is a company with the following capital structure: Authorised share capital P Ordinary shares of P1 100 000 5% Preference shares of P1 100 000 There were no changes to the number of shares in issue during the year. The retained earnings brought forward on 1 May 2014 were P8000. During the year ended 30 April 2015, the company made a profit of P40 000. Issued share capital P 50 000 80 000 On 30 April 2015 it was agreed to effect: 1. Transfer P20 000 to the general reserve 2. Payment of preference share dividend 3. Payment of final dividend of P0.05 per share on the ordinary shares. An interim dividend of P0.02 per share had been paid to the ordinary shareholders on 31 December 2014. Required: Prepare the profit and loss appropriation account for the year ended 30 April 2015.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 13C
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