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dividend

Subhash Jain (Chartered Accountant) (27 Points)

13 September 2008

I have 2 questions-

1.can a pvt.ltd,co. make provision for dividend on shares issued after balance sheet date but before AGM.

2.what notes on accounts will be suffucient if a co.do not add excise duty in valuation of finished goods from auditors point.

Thanking in advance

SCJain

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CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
Replied 13 September 2008

Proposed dividend is booked in the books by taking into account the number of shares issued as on the last day of the year. As such, the shares issued subsequently do not qualify for the dividend for the closing year.

In case the inventory valuation is not proper then a suitable qualification is to be given with the amount affecting the profitability for the year. Also, the deviation from AS2 should be a part of your qualification.