Cash flow statment

Kindly help we with treatment of unclamed dividend

Propased dividend     2019-25000

                                       2020-30000

Unclamed dividend     2019-10000

                                         2020-12000

Replies (4)
Quick Summary
This discussion clarifies the treatment of unclaimed dividends within a cash flow statement. It explains that unclaimed dividends should be deducted from proposed dividends as they represent amounts not yet paid. Proposed dividends are then included in financing activities once approved and paid. The conversation also touches upon relevant sections of the Companies Act 2013 regarding dividend payments and unclaimed amounts.

Unclaimed Dividend should be deducted from the amount of Proposed Dividend Paid because it represents that amount of Dividend which is not yet paid in financing activities. Proposed dividend should be included in financing activities when paid

As per Section 124 of Companies Act, 2013 and rules made there under ("the Act"), where a dividend has been declared by a company but has not been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the payment of the dividend.

Unclaimed Dividend is to be reduced from propose Dividend , and remaining propose Divided will be included in Financing activity in cash flow statement after approval and payment.

Yes financing activities and investing activities when received. What will happen after 30 days if no one claims it? 

Dr. Proposed dividends 

Cr. Accumulated dividends (retained earnings or reserves or payables)? If it is payables, it will also be shown in operating cash flows. I mean the difference of increase or decrease.

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