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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question No 02 Chapter No 14
2. The paid up capital of the company id Rs 5,00,000. the profits earned during the current year were only Rs 40,000. for previous many years, company is declaring a uniform dividend @12% on capital and it is decided to continue the same practice this year also. The balance id Dividend Equalization reserve at the beginning of the year i.e. 1.4.2017 was Rs 1,60,000.
Give entries to record the above and show necessary accounts.
In the Books of SS Limited
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| 2018 | |||||
| Mar. 31 | Profit/Loss A/c | Dr. | 40,000 | ||
| Dividend Equalisation Reserve A/c | Dr. | 20,000 | |||
| To Dividend Payable A/c | 60,000 | ||||
| (Being dividend equalization reserve transferred to divided payable A/c.) | |||||
| Mar. 31 | Dividend Payable A/c | Dr. | 60,000 | ||
| To Bank A/c | 60,000 | ||||
| (Being dividend paid 12@ of capital.) | |||||
| Dr. | Dividend equalization Reserve A/c | Cr. | |||||
| Dat | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 31/03/18 | To Dividend Payable A/c | 20,000 | 01/04/17 | By Balance b/d | 1,60,000 | ||
| 31/03/18 | By Balance C/d | 1,40,000 | |||||
| 1,60,000 | 1,60,000 | ||||||
| Dr. | Dividend Payable A/c | Cr. | |||||
| Dat | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 01/04/17 | By Profit/Loss A/c | 40,000 | |||||
| 31/03/18 | To Bank A/c | 60,000 | 01/04/17 | By Dividend Equalisation Reserve A/c | 20,000 | ||
| 60,000 | 60,000 | ||||||
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 - Theory Base of Accounting
Chapter No. 3 - Origin of Transactions
Chapter No. 4 - Vouchers and transactions
Chapter No. 6 - Accounting for Goods and Services Tax(GST)
Chapter No. 9 - Other Subsidiary Books
Chapter No. 10 - Journal Proper
Chapter No. 11 - Trial Balance
Chapter No. 12 - Bank Reconciliation Statement
Chapter No. 14 - Provisions and Reserves
Chapter No. 15 - Bills of Exchange
Chapter No. 16 - Rectification of Errors
Chapter No. 17 - Financial Statements - (Without Adjustments)
Chapter No. 18 - Financial Statements - (With Adjustments)
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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