Definition of free reserve for interim dividend payment

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Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Please let me know the definition of
free reserve for interim dividend payment

Thanx & regard
Gaurav Tyagi

Jatin Bajaj

Jatin Bajaj (Expert)
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18 May 2016 According to section 2(43) of Companies Act 2013, Free Reserves means reserves which as per the latest audited balance sheet of a Company are available for distribution as dividend.
Provided that : Any amount representing unrealized gains, notional gains or revaluation of assets weather shown as reserves or otherwise shall not be treated as free reserves

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Sir plz tell me one question.. weather
Balance sheet & accounts will be finalised
Brfore conducting AGM or it will be finalised
After AGM because in AGM directors may
Declare the dividend,

Jatin Bajaj

Jatin Bajaj (Expert)
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18 May 2016 Balance Sheet and accounts will be finalized before conducting AGM

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Ok if the accounts will be finalised before
conducting AGam then one question
Arise here..... assume in AGM the directors
Has declared dividend and paid same
Within 30 days..
Pls tell me how the accounting Entry of
Declaring dividend and paid' will be
Pass as accounts has already been
Finalised thereof..