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प्रश्न
Justify the following statement.
Dividend is paid out of the profits of the company.
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उत्तर
- Shareholders invest in the company’s shares with the aim of earning returns out of the profits of the company.
- The shareholders get dividends as a return on their investment.
- The shareholder, being the owner of the company, is entitled to a share of the company’s profits.
- A dividend is a share of the distributable profits of the company. Under any circumstance, the company cannot pay dividends out of capital. The payment of a dividend out of capital is illegal and attracts a penalty.
- Therefore, the company pays the dividend from its profits.
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संबंधित प्रश्न
Find the odd one.
Complete the sentence.
Dividend must be paid in______.
Complete the sentence.
Dividend cannot be paid out of ______.
Correct the underlined word and rewrite the following sentence.
Dividend is paid to creditors.
Correct the underlined word and rewrite the following sentence.
The Dividend to be paid should be transferred to Dividend A/c within 30 days of its declaration.
Arrange in Proper Order:
- Decision on Rate of Dividend
- Transfer to IEPF
- Payment of Dividend.
Explain the following term/concept.
Unpaid Dividend
Explain the following term/concept.
Unpaid Dividend Account
Justify the following statement.
Unpaid dividend cannot be used by the company.
Correct the underlined word and rewrite the following sentence.
Dividend is paid to creditors.
Answer in brief.
Discuss the rules governing unpaid and unclaimed dividend.
Justify the following statement.
Unpaid/Unclaimed Dividend is governed by some rules.
