A company transferred to the dividend account the amount of dividend transferred..... Apart from the actual amount of dividend paid the company transferred some excess amount to the account for bank charges on ad hoc basis. At the end of the year all the dividend were paid and no more amount remains to be paid. But them a portion of the amount transferred to the account for bank charges remains.
1. What should the company do with this account and the amount in the account.?
2. Can a company transfer any amount apart from dividend payable to the dividend account?
Please explain through relevant section , act, courtt ruling etc.
CAclubindia
