Query on basic accounting
This query is : Resolved
pavankumar
(Querist)
19 June 2013
"Provision is an charge against profit"
Q1)From above statement Can we say that Provision for Dividend a/c is also charge against profit.
Please guide me
Q1)From above statement Can we say that Provision for Dividend a/c is also charge against profit.
Please guide me
Ganeshbabu K
(Expert)
19 June 2013
No, dividend is appropriation of profits..
"Dividend is a distribution to shareholders out of profits or reserves available for this purpose."
if it is provision for expenses.. it is charge against profits..
.
.
because here even though you have profit or not we need to charge to statement of profit and loss
Thanks & regards
Ganesh babu k
"Dividend is a distribution to shareholders out of profits or reserves available for this purpose."
if it is provision for expenses.. it is charge against profits..
.
.
because here even though you have profit or not we need to charge to statement of profit and loss
Thanks & regards
Ganesh babu k
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