Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% prefrence shares of ₦1 each fully paid. ₦ Net profit for the year 90,000 Interim divi...
Question 1 Report
Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% prefrence shares of ₦1 each fully paid.
| ₦ | |
| Net profit for the year | 90,000 |
| Interim dividends paid: | |
| Ordinary shares | 25,000 |
| Profit and loss appropriation b/f | 10,000 |
| Goodwill written off | 1,000 |
At the end of the period, what is the balance of the profit and loss appropriation account?
Answer Details
Balance c/d = net profit + profit and loss - ( goodwill + ordinary share + preference share)
= (90,000 + 10,000) - ( 1000 + 25000 + 7500)
= 100,000 - 33500
= ₦66500
= (90,000 + 10,000) - ( 1000 + 25000 + 7500)
= 100,000 - 33500
= ₦66500
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