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This query is : Resolved
Guest
Guest
(Querist)
23 March 2010
I have a query in accounts .........please solve it(IPCC)
Situation: If We are preparing investment accounts for financial year 2009-2010 then
Mr. A purchased 500 equity shares on 1st april 2009 @ Rs 18 per share(FACE VALUE Rs. 10). Dividend declared on 1st may @ 10%. Since we are receiving dividend for the 2008-2009 but we create the investment account with the dividend which we receive in 2008-2009 . Why we credit investment account with amount of dividend which we recieve of previous year please tell me the logic behinnd this
Situation: If We are preparing investment accounts for financial year 2009-2010 then
Mr. A purchased 500 equity shares on 1st april 2009 @ Rs 18 per share(FACE VALUE Rs. 10). Dividend declared on 1st may @ 10%. Since we are receiving dividend for the 2008-2009 but we create the investment account with the dividend which we receive in 2008-2009 . Why we credit investment account with amount of dividend which we recieve of previous year please tell me the logic behinnd this
Guest
Guest
(Querist)
24 March 2010
I have a query in accounts .........please solve it(IPCC)
Situation: If We are preparing investment accounts for financial year 2009-2010 then
Mr. A purchased 500 equity shares on 1st april 2009 @ Rs 18 per share(FACE VALUE Rs. 10). Dividend declared on 1st may @ 10%. Since we are receiving dividend for the 2008-2009 but we create the investment account with the dividend which we receive in 2008-2009 . Why we credit investment account with amount of dividend which we recieve of previous year please tell me the logic behinnd this
Situation: If We are preparing investment accounts for financial year 2009-2010 then
Mr. A purchased 500 equity shares on 1st april 2009 @ Rs 18 per share(FACE VALUE Rs. 10). Dividend declared on 1st may @ 10%. Since we are receiving dividend for the 2008-2009 but we create the investment account with the dividend which we receive in 2008-2009 . Why we credit investment account with amount of dividend which we recieve of previous year please tell me the logic behinnd this
24 March 2010
The dividend you are talking about is the pre-acqusition dividend which is not your income as you where not holding the investment during that period (2008-09). More over the price of dividend is indirectly included in Rs.18 per share paid by you. Thus any amount relating to the preacqusition will reduce your cost. For More Ellaboration Refer As-13 Investment
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