Accointing of share in public company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 Dear Experts,
plz guide weather accounting is to be done in publice company on receipt of share application, share allotment etc.

regard
sumit

praveen

praveen (Expert)
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07 January 2016 On receipt of share application money. Debit bank account and credit share application money. On Allottment debit share application money ac and credit share capital.

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 sir also let me know weather accounting entry will be made on dividend given to shareholders if yes what enrty...

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praveen

praveen (Expert)
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07 January 2016 Yes you have to account. First u will pass entry for dividend payable. Debit dividend ac and credit dividend payable. Then when u pay it u will debit dividend payable and credit bank

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 sir weather any accounting entry will be made of praposed dividend... if yes what...

praveen

praveen (Expert)
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07 January 2016 Ya instead of dividend payable u can call it proposed dividend also

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 sir plz can you explain me what is trading of share and how the company decide that how much divident is to be given to it's shareholders..

praveen

praveen (Expert)
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07 January 2016 See shares are listed in the stock market. Stock market has lot of buyers and sellers for shares. Each person predicts the value of the share. There are lot of methodologies to predict the value of the share. Based on that one person buys the share. Based on the demand the value of the share changes. In case you have bought share at a lesser value and due to time the value went up then you make profit if it goes down you make loss.

Dividend is a company decision. The board of directors sit in the meeting discuss and after discussing whether they need money for expansion and things they will decide how much to give dividend.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2016 Sir as the dividend will be declare by board
Of directors in AGM after the accounts
Finalise assume for AY 2016-17 the accounts
Has been finalised and as per the rule
the dividend will be declare in AGM
My question is.. if the accounts has already
Been finalised say Net profit 1 crore
before any dividend in AY 2016-17 however
If in AGM the directors has declare the
Dividend of Rs. 5 Lakh and the same
The been paid to share holders...
my question is... company accounts had
Already been finalised and the dividend
was declared in AGM after finalization
Of accounts.. as the accounts had been
already finalised then how the accounting
entry of declaring dividend and paid the
Same will be done, the accounts has
already been finalised thereof...

Pls revert...