Accounting 0452 · IGCSE · Limited companies

Limited companies — practice question

A limited company gave the information below. - Issued share capital (50 000 ordinary shares of $\$1$ each): $\$50\,000$ - Profit for the year ending 31 December 2019: $\$13\,000$ - Transfer to general reserve on 31 December 2019: $\$6\,000$ - Interim ordinary share dividend paid during the year: $\$3\,000$ On 31 December 2019, it was agreed that the profit left over would be used to pay a final ordinary share dividend. What percentage final dividend would the ordinary shareholders receive?

  • A8%
  • B14%
  • C20%
  • D26%

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