Question

In: Accounting

The following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1,...

The following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1, $500,000. • On 31 March 20X1, the directors decided to pay an interim cash dividend of $100,000. • On 7 April 20X1, the interim dividend was paid. • For final dividends, the company’s constitution provides that the directors can recommend a dividend to be subsequently declared by a resolution of the members in a general meeting. • The directors recommended a final dividend of $250,000 to be paid. • The shareholders accepted the final dividend at the annual general meeting, and payment was made on 14 September 20X1. Required:

(a) Prepare journal entries to record the above dividend payments.

(b) Prepare the retained profits general ledger account.

Solutions

Expert Solution

b) Retained earning A/c

the books close on June 30,2XX1 and the dividend which required shareholder approval are not recorded at books closer date i.e June 30,2xx1.

the above retained earning account is prepared to reflect the balance on 30 Sep, Since opening retained earning balance is not given it is assumed to be zero.

Please like the answer..................for any doubts, please comment...................thank you


Related Solutions

he following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1,...
he following data relates to ABC Ltd: • Profit for the year ended 30 June 20X1, $500,000. • On 31 March 20X1, the directors decided to pay an interim cash dividend of $100,000. • On 7 April 20X1, the interim dividend was paid. • For final dividends, the company’s constitution provides that the directors can recommend a dividend to be subsequently declared by a resolution of the members in a general meeting. • The directors recommended a final dividend of...
The following information relates to a company ABC Ltd for the year ended 30 June 2020:...
The following information relates to a company ABC Ltd for the year ended 30 June 2020: Transaction totals for the year ended 30 June 2020 R Credit purchases of raw materials 503750 Freight on raw materiasl purchased (on credit) 99833 Sales of finished producgts 11440000 Direct Labour: Factory wages 828600 Pension fund contributions paid by employer 172500 Medical aid paid by employer 227200 UIF Contributions paid by employer 8144 Indirect Labour 500250 Electricity Factory 211450 Administration offices 127900 Rent Expenses...
The following information relates to ABC Pty Ltd for the years ended 30 June Year 3...
The following information relates to ABC Pty Ltd for the years ended 30 June Year 3 and Year 2: Year 3 $ Year 2 $ Total assets Owners’ equity 6,020,000 3,250,000 5,470,000 3,200,000 Annual sales Net profit (after tax) Weighted average number of ordinary shares issued 6,100,000 810,000 10,234,518 3,154,350 475,200 10,046,430 Required: Calculate the net profit margin, asset turnover, earnings per share and debt to total assets ratios for ABC Ltd for the year ended 30 June Year 3
The information below relates to ABC Company for the year ended 30 June 2020. Sales revenue...
The information below relates to ABC Company for the year ended 30 June 2020. Sales revenue 352,000 Accrued wages 15,000 Bank balance 1 July 2019 ($22,000) Cash paid to suppliers 192,200 Cash receipts from customers 294,000 Payments to employees and for expenses 25,000 Bank loan received 6,600 Property taxes paid 20,000 Depreciation of equipment 45,600 Interest received 20,500 Cash received from sale of share market investments 55,000 Cash paid to purchase computer hardware 40,000 Issued shares in exchange for block...
The accounting profit before tax of Jameson Ltd for the year ended 30 June 2018 was...
The accounting profit before tax of Jameson Ltd for the year ended 30 June 2018 was $320,000. It included the following revenue and expense items: Amortisation of development costs $30,000 Employee benefits expense 54,000 Carrying amount of plant sold 36,667 Depreciation expense - plant (15%) 40,000 Doubtful debts expense 12,000 Entertainment expense 14,220 Fines and penalties 7,200 Goodwill impairment 1,000 Insurance expense 24,000 Legal fees 4,200 Proceeds on sale of plant 30,000 Rent revenue 25,000 Royalty revenue (non-assessable) 3,500 Restructuring...
The accounting profit before tax of Subang Ltd for the year ended 30 June 2020 was...
The accounting profit before tax of Subang Ltd for the year ended 30 June 2020 was $320,000. It included the following revenue and expense items: Legal expenses 62 500 Interest expense 10 000 Bad debt expense 15 000 Depreciation expense – Plant & equipment 26 250 Entertainment Expense 2 500 Audit fee 40 000 Interest revenue 15 000 Rent revenue 10 000 Exempt income 37 500 Additional information: 1. Interest receivable at 30 June 2020 is $12,500 (2019: $15,000). Interest...
The accounting profit before tax of Jameson Ltd for the year ended 30 June 2018 was...
The accounting profit before tax of Jameson Ltd for the year ended 30 June 2018 was $320,000. It included the following revenue and expense items: Amortisation of development costs $30,000 Employee benefits expense 54,000 Carrying amount of plant sold 36,667 Depreciation expense - plant (15%) 40,000 Doubtful debts expense 12,000 Entertainment expense 14,220 Fines and penalties 7,200 Goodwill impairment 1,000 Insurance expense 24,000 Legal fees 4,200 Proceeds on sale of plant 30,000 Rent revenue 25,000 Royalty revenue (non-assessable) 3,500 Restructuring...
The following information relates to ABC Ltd., for the year ended 31st December, 2019.
The following information relates to ABC Ltd., for the year ended 31st December, 2019.             Sales……………………………………………………………….. Rs.2,000,000.             EBID ………………………………………………………………. 40% of sales.             Ordinary Shares capital of par value Rs.10/each……………… Rs.800,000.             8% Preference shares Capital of par value Rs.100/ each………. Rs.500,000.             10% Bonds payable of par value Rs.1000/each…………………. Rs.400,000.             Reserves and surplus………………………………………………Rs.250,000.             Current liabilities…………………………………………………..Rs.250,000. Tax rate is 30%.             Market price of share is Rs.20 each.             Dividend payout ratio is 60%. Required; Compute and comments on each of the following ratios a)Earning per...
The following information relates to Egoly Ltd for the year ended 30th June 2019: EGOLY LTD...
The following information relates to Egoly Ltd for the year ended 30th June 2019: EGOLY LTD BALANCE SHEET AS AT 30th JUNE 2019 2019 2018 $ $ ASSETS Current Assets    Cash at bank 67,710 59,666    Accounts receivable 252,760 283,290    Inventory 1,107,600 951,400    Prepaid expenses 113,600 35,500 Total current assets 1,541,670 1,329,856 Non-current assets    Equipment 1,263,800 823,600    Accumulated depreciation – equipment (238,560) (143,136) Total non-current assets 1,025,240 680,464 TOTAL ASSETS 2,566,910 2,010,320 LIABILITIES & SHAREHOLDERS...
Kerry Ltd owns 70% of James Ltd. For the year ended 30 April 20X1, James Ltd...
Kerry Ltd owns 70% of James Ltd. For the year ended 30 April 20X1, James Ltd reported a profit of $1 million. On 30 May 20X0, Kerry Ltd sold inventory to James Ltd for a $0.5 million profit. All this inventory was sold to customers outside the group on 1 June 20X0. What is the NCI share of James Ltd’s profit for year ended 30 April 20X1 ? Select one: $120,000 $150,000 $450,000 $300,000 Lillee Ltd acquired 60% of the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT