We have a company, which has past accumulated profits of10,00,000 ( in P& l A/c and not in any reserves) and profit during the year is only 10,000The paid up capital of Company is100,000. Please give me your opinion about how much dividend can be paid and what amount needs to be transferred to reserves.?
dividend can pay upto Rs.10,10000/-
if dividend is paid % on Paid up Share Capital
Dividend paid % Transfer to General Reserve
upto 10% nil
10-12.5% 2.5%
12.5-15% 5%
15-20% 7.5%
above 20% 10%
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
