A dividend of 10% in a company on 500 000 ordinary shares of ₦1 nominal value has been declared, How much will a shareholder receive if he has 200 shares?

Assessment: JAMB UTME - Principles of Accounts - 1997 Subject: Financial Accounting

Question 1 Report

A dividend of 10% in a company on 500 000 ordinary shares of ₦1 nominal value has been declared, How much will a shareholder receive if he has 200 shares?
Answer Details
A dividend of 10% means that for each share owned, the shareholder will receive 10% of the nominal value of that share. In this case, the nominal value of each share is ₦1. Therefore, for each share owned, the shareholder will receive ₦0.10 (which is 10% of ₦1). If a shareholder has 200 shares, then the total amount of dividend that he will receive is: 200 shares x ₦0.10 per share = ₦20 Therefore, the correct answer is: ₦20.
Read lesson note on Joint Venture Accounts (JAMB)
Read lesson note on Provisions And Reserves (WAEC)
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