Question on: JAMB Accounting - 2023
Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% preference shares of ₦1 each fully paid. Determine the balance of the profit and loss appropriation account at the end of the period.
|
₦ |
|
|
Net profit for the year |
90,000 |
|
Interim dividends paid: |
|
|
Ordinary shares |
25,000 |
|
Profit and loss appropriation b/f |
10,000 |
|
Goodwill written off |
1,000 |
A
₦66,5000
B
₦90,000
C
₦100,000
D
₦74,000
Ask EduPadi AI for a detailed answer
Correct Option: A
Balance c/d = Net Profit + Profit & Loss - ( Goodwill + Ordinary Share + Preference Share)
= (90,000 + 10,000) - ( 1000 + 25000 + 7500)
= 100,000 - 33500
= ₦66500
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