http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_w12_qp_11.pdf
Q2) (h)- Why and how is it 80 000?
Can somebody explain me this in details? I don't get this at all. :/
$40000 is the value of 80000 ordinary shares where the cost per share is $0.50.
So 80000 is the no. of shares is used to calculate the amount of dividends.
Note: read the question properly.
a $ sign shows the value of the shares not the no. of shares