Problem
The following information was taken the Books of Richfield Ltd, on the last day of the financial year.
|
Issued share capital
|
|
|
100 000 Ordinary shares
|
R200 000
|
|
100 000 Preference shares (fixed annual dividend of 10c/share)
|
R100 000
|
|
Retained earnings
|
R60 000
|
|
Cash
|
R50 000
|
|
The Directors have declared a dividend of 10c per ordinary share.
|
|
|
Declaration date:
|
15 December
|
|
Closing of registers:
|
30 December
|
|
Payments of dividends:
|
31 December
|
|
Financial year end:
|
31 December
|
Task
Prepare the journal entries with narrations relating to dividends.