in this question please calculate 9% amount of preference shares - Accountancy - Accounting for Share Capital

Question

in this question please calculate 9% amount of preference shares

Komal Rani · Accepted Answer

Dear Anushka 9% of preference shares does not mean the amount of
preference shares to be offered to the public Rather 9% implies
that the dividend @ 9% will be given to the public to whom these
preference shares are being issued So as given in the question that
500 preference shares are being issued to the public at rupees
hundred Per share, so when the year and dividend will be calculated
on the amount (500*100) 50,000 @ 9% which will be 4500 I hope it
helps Regards