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Hello,
I am studying the level 3 manual using the Kaplan Advanced bookeeping study book.
I have a question from page 52 (Activity 3) ZZ Ltds.
In the additional information provided part b says an interim dividend of 2p has been paid on ordinary shares, and one half of the dividend on preference shares.
My question is this;
Looking at the answers at the back of the book the accrued preference dividend is 2400. I was wondering where that figure comes from and how do I disect the information in parts b and c.
Any help would be greatly appreciated
Thanks
William
I think Ive worked it out, 8% * 30,000 (half the dividend)= 2400. I assume thats correct, but I thought the 8% was the interest costs of the loan, i.e finance cost in the p&l. Is it right to assume that an 8% Preference share refers to both 8% interest on loan and also 8% dividend paid? Does the 8% figure have two functions?
Edited at 27 Sep 2011 04:38 PM GMT
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