WHY IS DIVIDEND ADDED IN CLOSING CAPITAL EMPLOYED WHILE CALCULATION OF AVERAGE CAPITAL EMPLOYED IN VALUATION OF GOODWILL ?
3 Replies
CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 22 March 2013
Dear Ashay,
Refer followinf link :
Read Point no.: 2. of refd link.
https://www.scribd.com/doc/28841904/Valuation-of-Goodwill
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 23 March 2013
Dividend is an appropriation of profit which in turn is a part of capital.
Profit / Loss is nothing but 'changes in capital' after adjusting drawings and additions.
Sugandhi Joshi
(B.Com)
(28 Points)
Replied 24 January 2015
Is divided or proposed dividend is fully added bak to closing capital or like drawings n profits half(1/2) of it is added bak?
Plz reply to my query..
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