Day: December 24, 2020

A company has an authorised share capital of 2 million £0.25 ordinary shares of which 1.6 million 
are in issue

It is proposed to pay a dividend totalling £40 000.

Which correctly describes the amount of dividend?

Select ONE answer:

1. £360
2. £560
3. £940
4. £1,140

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – £40,000 / (1,600,000 / 0.25)
3. Not correct
4. Not correct

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