Preference Dividend

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2010 Is it mandatory to pay Cumulative Preference Dividend each and every year or it should be paid at the time of redemption the cumulative dividend amount,and every year is it necessary to make the provision for such Preference Dividend

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 May 2010 If there is adequate profit every year to pay the preference dividend then it must be paid every year. If profits adequate then provision should be made in the books

If not then should be paid at the time of maturity.