Paper 2 · June 2018 · Company Accounts and Share Capital
Green Limited has 60,000 4% redeemable preference shares of $1 each. On 30 May 2015 a full year's preference share dividend was declared and paid. Calculate the amount of the preference dividend.
Model answer
2400
Also accepted: $2400
Explanation
Preference dividend = 4% × $60,000 nominal value = $2,400.
Derived from ZIMSEC Accounting Paper 2, June 2018, Q2