Payment of Dividend on Cumulative Preference Shares
This query is : Resolved
CS Ashish Jain
(Querist)
30 October 2010
Our company has issued 4% Cumulative Preference Shares but in current year we have inccured loss so we can not pay dividend in the current F.Y.
My question is that as the Preference Shares are Cumulative whether we need to make provisions in our current years books for the dividend to be paid in future.
My question is that as the Preference Shares are Cumulative whether we need to make provisions in our current years books for the dividend to be paid in future.
CA.Amit Revankar
(Expert)
30 October 2010
Dividend is appropriation of profit and cannot be said provision.provision is done only for expenditure and losses and dividend is not the same.
According to me, u r not required to make any provision in the books and mere required to disclose in notes to accounts that dividend is cumalted
According to me, u r not required to make any provision in the books and mere required to disclose in notes to accounts that dividend is cumalted
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- GST on Renting godown to KFCSC for Storage of Raagi
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- TAX AUDIT ON PROFESSIONAL INCOME
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
