Question: A shareholder in a limited company is disgusted because the company has paid such a small dividend. He shows you the balance sheet, saying

A shareholder in a limited company is disgusted because the company has

A shareholder in a limited company is disgusted because the company has paid such a small dividend. He shows you the balance sheet, saying "Just look at the other balances available for dividend". He indicates the following items. (i) (ii) (iii) Share premium account Fixed asset replacement reserve Contingencies reserve GH200,000 GH50,000 GH 85,000 Requirement Advise him concisely on the availability of the above balances for dividend declaration.

Step by Step Solution

★★★★★

3.54 Rating (181 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The shareholder is correct that the company has available balances that could be used to declare a dividend However it is important to note that the c... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

answer this Which of the following statements about CPU sockets are true? (Select all that apply) Intel CPUs use LGA sockets, which are seated with a load-lever bracket or CPU tool removal kit AMD...

In your experience, how have the concepts introduced in the systems school of management thought been illustrated?

The formula described in this section for determining sample size corresponds to a confidence level of 95%. What would be the appropriate formula for determining sample size when the desired...

Show that NP is closed under union and concatenation.

A balance sheet is to be drawn up from the following as at 30 June 20X6: Issued share capital: ordinary shares 1 each Authorised share capital: ordinary shares of 1 each 100,000 200,000 10 per cent...

Self-test The balance sheets of Essex Ltd at 30 September 2001 and 2002 are as follows: Balance sheets as at 30/9/01 30/9/02 000 000 000 000 Tangible fixed assets: At cost or valuation 3,770 4,890...

Debussy Company has prepared a set of financial statements: balance sheet, income statement and statement of retained earnings (see Exhibit 1). The accounting period X1 ends on 30 September X1. Due...

Purpose: To help you understand the importance of cash flows in the operation of a small business. You are the chief operating officer (COO) of a small public corporation. The company just completed...

Northeast Servotech Corporation, which offers services to the computer industry, has expanded rapidly in recent years. Because of its profitability, the company has been able to grow without...

Janet Flynn, owner of Reel Company, plans to apply for a bank loan at Petro National Bank. Because the company has a lot of debt on its balance sheet, Janet does not plan to show it to the loan...

The following trial balance of X Limited, a non-listed company, has been extracted from the books after the preparation of the profit and loss and appropriation accounts for the year ended 31 March...

Using the AAA model on ethical decision-making (see below), analyze the case. On February 11, 2009, the SEC announced settlements with K3R, Inc., and Halliburton Company to resolve SEC charges that...

Q.2 A particle of rest mass m, moves at a velocity u and collides with a stationary particle of rest mass M,. If the particles stick together after the collision, find the speed of the composite mass.

The manager of a publiphing company plana to give a $ 2 4 , 0 0 0 benus to the top ti percent, $ 4 0 , 0 0 0 no the fient 2 8 percent, and $ 5 . 0 0 0 to the next 1 0 percent of sales...

Assuming you are a team of 3 to 4 graduate engineers and you are being asked to form a project team to work on a project of your choice. You should work professionally and coordinate and communicate...

Assume you lend $10.000 for a five (5) year period. The current the real rate at the time you lend the money is 2.3%. You charge no risk premium on the loan. At the end of the 5-years loan period you...

Halibut Pricing Problem While fishing for halibut in Kodiak, AK, we have the opportunity to obtain the heads from approximately 40,000 lbs. of halibut. We estimate that the heads will weigh...

John holds 10 percent interest in SS Partnership for past three years. His basis in the partnership is $200,000 which includes a $100,000 share of nonrecourse debt that is allocated to him. 1. If...

ABC Unicycle makes unicycles and has two divisions. Each division is evaluated as a profit center. The Wheel division, located in Nambia, produces unicycle wheels and can choose to sell wheels on...

Use these numbers : -1.55 2.84 2.28 -3.04 1.09 -0.16 -1.39 1.16 4.69 0.87 -2.08 0.55 2.27 4.31 1.83 -3.24 4.61 1.15 -2.46 Implement the following one-sided lower hypothesis test: H 0 : = 1.17 H 1 :...

QUESTION 2 Curechem SA Limited is a large publicly traded firm on the Johannesburg Stock Exchange. Based on a R100,000 market feasibility study it is considering the manufacture and sale of a new...

Please do it step by step. Thanks. Granada Limited owns various business operations. It operates three hotels and a cargo container vessel and has several buildings for investment purposes. The...

The following share capital information is available for a corporation with an April 30, The shares were issued when the corporation began operations on May 1, 2015. No dividends were declared during...

can somebody please help me with this assignment? and it's due on April 23th,2020 18 CGV B897 Carporate Administration and Secretaryship Assignment 3 (due date revised) Due date: 23 April 2020...

estimate showing all relevant calculations the maximum premium Navidale Co could pay to acquire Lonchivar Co explaining the approach taken and any assumptions made. ge scale plant and machinery for...

True or False You don't need to explain it just please answer it correctly. Thanks. 1. When no-par ordinary shares without a stated value is issued for cash, the Ordinary Shares account is credited...