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...
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...
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..
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.
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...