I have a query in accounts .........please solve it(IPCC)
Situation: If We are preparing investment accounts for financial year 2009-2010 then
Mr. A purchased 500 equity shares on 1st april 2009 @ Rs 18 per share(FACE VALUE Rs. 10). Dividend declared on 1st may @ 10%. Since we are receiving dividend for the 2008-2009 but we create the investment account with the dividend which we receive in 2008-2009 . Why we credit investment account with amount of dividend which we recieve of previous year please tell me the logic behinnd this
CAclubindia
