Question

Unclaimed dividend appears in a company’s balance sheet under the sub-head ______.

Options

• Short-term Borrowings

• Trade Payables

• Other Current Liabilities

• Short-term Provisions

Answer 1

Unclaimed dividend appears in a company’s balance sheet under the sub-head other current liabilities.

Explanation:

Unclaimed Dividend refers to the dividend declared by the company but not yet claimed by shareholders. Since the amount is payable within 7 years and can be claimed anytime during that period, it is considered a current liability. In the Balance Sheet, it is shown under:

Current liabilities → Other current liabilities