xyz ltd

XYZ Ltd. is having inadequacy of profits in the year ending 31-03-2021 and it proposes to declare 10% dividend out of General Reserves. From the following particulars ascertain the amount that can be utilized from general reserves, according to the Companies (Declaration of Dividend out of Reserves) Rules, 2014: 5,00,000 Equity Shares of 10 each fully paid up 50,00,000 General Reserves 25,00,000 Revaluation Reserves 6,50,000 Net profit for the year 1,42,500 Average rate of dividend during the last five years has been 12%