English

Give One Word / Term / Phrase for the Following Statement : - Book Keeping and Accountancy

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Question

Give one word / Term / phrase for  the following statement :
The capital on which dividend is paid.

One Word/Term Answer
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Solution

Paid up Capital

Explanation:  A company declares dividend on the amount of money paid up by the shareholders. That is, dividend is declared on paid-up share capital. It represents the money received from the shareholders on the shares held by them. It is not necessary that every shareholder will pay the whole amount of called-up share capital; therefore, a company pays dividend on the amount of paid-up capital.

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Chapter 10: Company Accounts Part - 1 (Accounting for Shares) - Exercise 2 [Page 350]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise 2 | Q 11 | Page 350
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