Treatment of certain items in revised schedule 6

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hi all,

i was working out a few problems on preparing FS... and came across some confusing adjustments with regard to

(A)dividend .

1. if company has preferce sh is it always necessary to declare dividend on them first even if question is silent.

2.how to treat INTERIM DIVIDEND PAID during current year 

3.Is DDT @ 16.995% mandatory

4.treatment of final proposed dividend in current year 

 

(B) fixed assets

1. Is it necesary to show fix assets at net block when prov for dep is maintained 

inputs of are appreciated 

Thnx

 

Replies (2)

if cum. pref.share then even question is silent  propsed dividend should be made.

 

for interim dividend , entry should be made as follows-

Interim dividend a/c     Dr

CDT                  a/c     Dr

    To bank          a/c        

(being interim dividend paid)

Note-Interim Dividend is paid for the period.(eg-4 month , 6 month,7 month etc)

Profit and loss a/c Dr 

   To Interim dividend a/c

   To CDT                    a/c

(beinf amt transfer to P&L a/c)

> for final dividend proposed -

Note- It is declear for whole year,entry should be made as follows

Profit and loss a/c Dr

 To Proposed Dividend a/c 

  (Being dividend proposed)

> For Fixed Assets -It should be shown as follows 

     fixed assets gross block   xxx

   less Accum.Depreciation    xxx

  Net block                           --------------

                                               xxx

                  

 

 

  

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