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Commerce · Q1629

Accounting

Graduate and Post Graduate · Commerce · question 1629

Q1629

A company issued 50,000 Equity shares of Rs. 10 each, Rs. 8 paid up and 50,000 8% Preference shares of Rs. 100 each. Expected profits are Rs. 10,00,000 Normal rate of dividend on Equity shares is 16%, Provision for taxation 60% and 10% of the profit is transferred to reserves. The value of equity share will be:

A.
40
Answer
B.
50
C.
45
D.
None of the above

Answer: Option A

Solution

Answer: Option A
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