A company's profit after tax is ₹2,00,000. Preference dividend ₹20,000. Transfer to general reserve ₹30,000. Profit available for equity dividend is: MCQ with Answer and Explanation

A company's profit after tax is ₹2,00,000. Preference dividend ₹20,000. Transfer to general reserve ₹30,000. Profit available for equity dividend is:
A. ₹1,80,000
B. ₹2,20,000
C. ₹2,00,000
D. ₹1,50,000
Answer: Option D
Solution (By JKSSB Mock Tests)
Profit after preference dividend and transfer to reserve = 2,00,000 - 20,000 - 30,000 = ₹1,50,000.

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Practice More Accountancy and Book Keeping Questions

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The 'Indian Financial Management System' for central government is managed by:
A. Securities and Exchange Board of India
B. Reserve Bank of India
C. Controller General of Accounts (CGA)
D. Ministry of Corporate Affairs

Correct Answer: Option C


Explanation:
CGA is the principal advisor on accounting matters for the Union Government.

Question #2
Which of the following errors does NOT affect the trial balance?
A. Omitting to post one side of a transaction
B. Recording a transaction twice
C. Wrongly totaling an account
D. Posting ₹500 to the wrong account

Correct Answer: Option D


Explanation:
Posting to the wrong account (error of principle or wrong personal account) keeps the debit and credit totals equal, so the trial balance still agrees.

Question #3
The term 'IFRS' stands for:
A. Indian Fiscal Reporting System
B. Indian Financial Reporting Standards
C. International Financial Reporting Standards
D. International Fiscal Reporting Standards

Correct Answer: Option C


Explanation:
IFRS stands for International Financial Reporting Standards, issued by IASB.