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6 marksLimited Liability Companies

CSEC Principles of Accounts · January 2013 · Paper 2 · Question 7(b)

MMC Company Ltd. earned revenue of 755 800 and net profit of 302 600 for the year ended 31 December 2012, allocating profit to general reserve (90 000), ordinary dividends (55 000), and preference dividends (entitlement).

Prepare a statement of MMC Company Ltd's Profit and Loss Appropriation Account for the year ended 31 December 2012.

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Other parts of this question

  1. 7(a)(i)Prepare the journal entry to record the issue of the shares.[5 marks]
  2. 7(a)(ii)State ONE difference between ordinary shares and preference shares.[1 mark]
  3. 7(c)(i)a)Calculate the Return on the capital invested at 1 January 2012 for MMC Company Ltd.[2 marks]
  4. 7(c)(i)b)Calculate the Dividend rate (percentage) for ordinary shareholders for MMC Company Ltd.[4 marks]
  5. 7(c)(ii)Compare your calculated return on capital invested and ordinary dividend rate to the industry averages (30.82% and 10.5%), and write a statement on MMC's…[2 marks]

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