Question

Study the following case/situation and express your opinion :

DIAMOND Co. Ltd. is considering to declare Interim Dividend.

1. In how many days of the declaration it should transfer the funds to Dividend Account?
2. In how many days it must pay it to shareholders?
3. In how many days of the declaration it must transfer the funds to the Unpaid Dividend A/c?

Answer 1

1. The funds should be transferred to the Dividend Account within 5 days from the date of declaration of interim dividend.
2. The interim dividend must be paid to the shareholders within 30 days from its declaration.
3. The unpaid dividend must be transferred to Unpaid Dividend A/c within 37 days from its declaration.