Dividend
This query is : Resolved
29 November 2013
How is dividend distributed to shareholders?
Theoretically it is done from reserves kept from net profits but how is it practically done? As per my limited knowledge.. our actual profits aren't book profits but they are the cash profits but for the purpose of dividend distribution we calculate as per net profits... I am a little bit confused. Can any one enlighten me???
Thanx and Regards
Theoretically it is done from reserves kept from net profits but how is it practically done? As per my limited knowledge.. our actual profits aren't book profits but they are the cash profits but for the purpose of dividend distribution we calculate as per net profits... I am a little bit confused. Can any one enlighten me???
Thanx and Regards
29 November 2013
Debajani,
If you are talking about practical way to distribute dividend then you may be knowing that Shareholders are paid actual cash or cash equivalent for dividend... For paying dividend company needs assets like investments or cash bank balance by which it can pay the amount.. But there should be some limit and theory (calculation). Hence to calculate the amount we use net profit.. I think your are now able to differentiate between the actual cash profit and net profit..
If you are talking about practical way to distribute dividend then you may be knowing that Shareholders are paid actual cash or cash equivalent for dividend... For paying dividend company needs assets like investments or cash bank balance by which it can pay the amount.. But there should be some limit and theory (calculation). Hence to calculate the amount we use net profit.. I think your are now able to differentiate between the actual cash profit and net profit..
29 November 2013
Ohh ok.. Thank you.. but can i get more clarification by an example?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
