Question

What will be the accounting treatment of a dividend received in the books of accounts?

पर्याय

• Asset side of Balance Sheet

• Liability side of Balance Sheet

• Debit side of Profit and Loss account

• Credit side of Profit and Loss account

Answer 1

Credit side of Profit and Loss account

Explanation:

Dividend received is non‑trading income that increases profit; therefore, it is recorded as income (credit) in the Profit & Loss account, not as an asset or liability.