Explain the concept of On 1st Baisakh 2075, MG Group Stockholder' Equity category appeared as follows:
500,000
8% Preferred Stock of Rs.500 par value 1,000 shares issued and outstanding
1,500,000
Common stock Rs. 100 par value 15,000 shares issued and outstanding
300,000
Additional paid in capital - Preferred
Additional paid in capital - Common
400,000
Total contributed capital
2,700,000
Retained earnings
2,000,000
Total shareholders' equity
4,700,000
The Preferred Stock is non-cumulative and non-participating. During 2075 the following
transaction occurred
a. On 1st Ashwin, declared a cash dividend of Rs.80,000 on preferred stock. Paid the
dividend on 1st Kartik.​