Vidyalelo
Commerce · Q429

Accounting

Graduate and Post Graduate · Commerce · question 429

Q429

As per section 205 (2A) a company is obliged to transfer at least what amount in reserve, if the rate of dividend is more than 20% of the paid up capital? or If the proposed dividend is 20% the percentage of profits to be transferred to reserve is:

A.
5%
B.
2.50%
C.
10%
Answer
D.
7.50%

Answer: Option C

Solution

Answer: Option C
No explanation is given for this question Let's Discuss on Board