At 1 November 2018, Forum Limited's retained earnings stood at £540,000. The profit for the year ended 31 October 2019 was £108,000. The company had 2,000,000 ordinary shares in issue at 1 November 2018. The par value of the ordinary shares is 25 pence. On 1 May 2019, Forum Limited undertook a 2 for 5 bonus issue. At 31 October 2019, the balance on the retained earnings account was £288,000. What was the total dividend payment made during the financial year ended 31 October 2019?

Question

Quizplus · Accepted Answer

The Answer of At 1 November 2018, Forum Limited's retained earnings stood at £540,000. The profit for the year ended 31 October 2019 was £108,000. The company had 2,000,000 ordinary shares in issue at 1 November 2018. The par value of the ordinary shares is 25 pence. On 1 May 2019, Forum Limited undertook a 2 for 5 bonus issue. At 31 October 2019, the balance on the retained earnings account was £288,000. What was the total dividend payment made during the financial year ended 31 October 2019?

At 1 November 2018, Forum Limited's Retained Earnings Stood at £540,000