Hi -
Please guide me, why dividind paid amount not deducted in P&L account.
Regards
Shankar G
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Dividend Amount
Replies (5)
DIVIDEND IS THE RETURN THAT SHARE HOLDERS GET IT IS NOT AN EXPENSE FOR THE COMPANY IT IS LIKE APPROPRIATION OF INCOME EARNED HENCE IT IS NOT DEBITED TO P AND L BUT SHOWN BELOW THE LINE.FURTHER GOING BY MATCHING PRINCIPAL DIVIDEND HAS NOTHING TO DO WITH THE INCOME EARNED SO YOU CAN NOT DEBIT DIVIDEND AGAINST INCOME IN P AND L
agreed
Div is not an expenses.., It is just appropriation of Net Income......
It is not considered in profit and loss account.
but it will come in P& L appropriation a/c
In simple words It is not Diversion of Income but it is Appropriation of Income.
agreed with all above
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