Question

On 31 March 2025, XYZ Ltd. declares a final dividend of ₹5 per share on 10 lakh shares. The company’s policy is to transfer 10% of current year profits to general reserve before declaring dividends. If profit after tax for FY 25 is ₹8 crore, compute the transfer to reserve and dividend payable (excluding DD

  • T .
A ₹90 lakh to reserve; ₹50 lakh dividend
B ₹80 lakh to reserve; ₹5 crore dividend
C ₹80 lakh to reserve; ₹50 lakh dividend
D ₹8 lakh to reserve; ₹5 crore dividend
E None
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