Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% prefrence shares of ₦1 each fully paid. | | ₦ | | 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 | At the end of the period, what is the balance of the profit and loss appropriation account?
A. ₦66,5000  B. ₦90,000 C. ₦100,000 D. ₦74,000 Correct Answer: AExplanationBalance c/d = net profit + profit and loss - ( goodwill + ordinary share + preference share)
= (90,000 + 10,000) - ( 1000 + 25000 + 7500)
= 100,000 - 33500
= ₦66500 |
