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Yes.....that salevalue includes the amount of dividend to be received by the buyer for the period which he doesnt actually hold them but receives div when declared by the  co...

Like the seller receives the div  for which he is the righfull owner as a part of the sale consideration...

yes the value of dividend is included in the price.

can u explain this with journal entries to be passed by the seller at the time of sale on cum dividend basis

Simple entry for selling the investment that is

Bank A/c Dr

     To Investment A/c

      To Profit/loss on sale of investment A/c

Entry is different in case of debenture or bond. Then the time value of interest is taken into consideration and accounted for

yes cum dividend includes the amount of dividend accrued till the date of sale of shares

i here just want to confirm that whether such portion of div included in sale value will be taken to p&l a\c of seller and for that, another entry.....

bank a\c     dr

  to div a\c

will be passed?

No you cannot account for dividend. No need to pass that entry.

Originally posted by : ashish gupta
	No you cannot account for dividend. No need to pass that entry.

I Agree with ashish,

Since the amount being paid in excess of the share value is because of the buyer getting the benefit of dividend at a later date. So the excess amount is being earned by the seller is a remuneration/profit instead as actual dividend.

for more details refer: -

https://en.wikipedia.org/wiki/Dividend