Big doubt............?

Page no : 2

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 16 October 2012

Even if shares are issued at premium or discount, the company will pay you dividend on paid value proportion to face value..

Lets take an example:

FACE VALUE : 100

ISSUE PRICE : 110 (at premium)

PAID UP VALUE : 55 (Half of issue price)

Hence, dividend is paid on Rs. 50 only (proportioned to face value against paid up value)..

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Haran (Practice) (382 Points)
Replied 16 October 2012

dear friends

if some of you are younger to praveen sharma sir,please address him as sir as he is elder to us and moreover he is a teacher,no offence meant from me but just my views.

please do not get me wrong.

regards

1 Like

chandra (student) (528 Points)
Replied 16 October 2012

Dividend is paid on share capital (paidup share capital) not on premium

Vinay Ramgoniwar (CA Final) (36 Points)
Replied 17 October 2012

It's Paid up value. very well explained earlier. But I would like to answer the good Que asked by CA Jain sir. Sir it will be definitely Fave value in such case.