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The following information pertains to X Ltd.
i. Equity share capital called up Rs.5,00,000
ii. Calls in arrear Rs. 40,000
iii. Calls in advance Rs. 25,000
iv. Proposed dividend 15%
 
Q.The amount of dividend payable = ?
  • a)
    Rs.75,000
  • b)
    Rs.72,750
  • c)
    Rs.71,250
  • d)
    Rs.69,000
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The following information pertains to X Ltd.i. Equity share capital ca...
Calculation of Amount of Dividend Payable by X Ltd.

Equity Share Capital Called up = Rs. 5,00,000

Calls in Arrear = Rs. 40,000

Calls in Advance = Rs. 25,000

Proposed Dividend = 15%

Step 1: Calculation of Calls Received

Calls Received = Equity Share Capital Called up - Calls in Arrear + Calls in Advance

Calls Received = Rs. 5,00,000 - Rs. 40,000 + Rs. 25,000

Calls Received = Rs. 4,85,000

Step 2: Calculation of Dividend Payable

Dividend Payable = Proposed Dividend x Equity Share Capital

Dividend Payable = 15% x Rs. 5,00,000

Dividend Payable = Rs. 75,000

Step 3: Adjustment for Calls in Arrear

Dividend Payable = Dividend Payable - Calls in Arrear

Dividend Payable = Rs. 75,000 - Rs. 40,000

Dividend Payable = Rs. 35,000

Step 4: Adjustment for Calls in Advance

Calls in Advance will be adjusted against the amount due from the shareholder for the dividend.

Dividend Payable = Dividend Payable - Calls in Advance

Dividend Payable = Rs. 35,000 - Rs. 25,000

Dividend Payable = Rs. 10,000

Therefore, the amount of dividend payable by X Ltd. is Rs. 10,000 (Option D).
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The following information pertains to X Ltd.i. Equity share capital called up Rs.5,00,000ii. Calls in arrear Rs. 40,000iii. Calls in advance Rs. 25,000iv. Proposed dividend 15%Q.The amount of dividend payable = ?a)Rs.75,000b)Rs.72,750c)Rs.71,250d)Rs.69,000Correct answer is option 'D'. Can you explain this answer?
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The following information pertains to X Ltd.i. Equity share capital called up Rs.5,00,000ii. Calls in arrear Rs. 40,000iii. Calls in advance Rs. 25,000iv. Proposed dividend 15%Q.The amount of dividend payable = ?a)Rs.75,000b)Rs.72,750c)Rs.71,250d)Rs.69,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The following information pertains to X Ltd.i. Equity share capital called up Rs.5,00,000ii. Calls in arrear Rs. 40,000iii. Calls in advance Rs. 25,000iv. Proposed dividend 15%Q.The amount of dividend payable = ?a)Rs.75,000b)Rs.72,750c)Rs.71,250d)Rs.69,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The following information pertains to X Ltd.i. Equity share capital called up Rs.5,00,000ii. Calls in arrear Rs. 40,000iii. Calls in advance Rs. 25,000iv. Proposed dividend 15%Q.The amount of dividend payable = ?a)Rs.75,000b)Rs.72,750c)Rs.71,250d)Rs.69,000Correct answer is option 'D'. Can you explain this answer?.
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