Question No 02 Chapter No 14 – USHA Publication 11 Class

Question No 02 Chapter No 14

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.

The solution of Question No 02 Chapter No 14: –

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 Machinery Disposal A/c   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: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

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)

 

 

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