Calculate the amount of Dividend paid during the year 2022 from the following information.
Balance of Proposed Dividend as on 31st March, 2021 was ₹40,000 and on 31st March, 2022 ₹60,000. Interim Dividend was paid @20% on share capital. Share capital was ₹4,00,000.
Answer & explanation
Correct answer: option 2
The correct answer is option (2)- ₹1,20,000.
Proposed dividend as on 31st March, 2021 = ₹40,000
Proposed dividend on 31st March, 2022 = ₹60,000
Interim dividend = 4,00,000 x 20/100
= 80,000
Dividend paid during the year = Proposed dividend as on 31st March, 2021 + Interim dividend
= 40,000 + 80,000
= 1,20,000
*Last year proposed dividend is paid in this current year.
Note- Proposed dividend on 31st March, 2022 = ₹60,000. It will be paid in the next year when it was declared by board of directors.