Question
Marwa Co has issued 30,000 ordinary shares of OMR0.700 baisa each and 10,000 9% preference shares of OMR 3 each. Its profits after taxation for
Marwa Co has issued 30,000 ordinary shares of OMR0.700 baisa each and 10,000 9% preference shares of OMR 3 each. Its profits after taxation for the year 2019 were OMR 15,500. The directors have decided to pay OMR 6,000 as ordinary dividend. The amount of Preference dividend and the retained profits for the year 2019 will be:
a.
Preference dividend - RO 2700 and Retained profits - RO 14,600
b.
Preference dividend - RO 900 and Retained profits - RO 8600
c.
Preference dividend - RO 900 and Retained profits - RO 14,600
d.
Preference dividend - RO 2700 and Retained profits - RO 6800
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