Proposed dividend...........?

Since proposed dividend is a part of profit set aside for disitribution of dividend...its just a appropriation of profit, therefore it is to be shown under reserves and surplus.

In old schedule VI, it was shown under Current liability which was conceptually wrong.

Now that presentation has been rectified in the revsed schedule VI notified by MCA.

For more details click on the link below:

/articles/treatment-of-proposed-dividend-under-revised-schedule-vi-15354.asp#.UH0SxWfP0rc