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Proposed dividend
pls help me experts,
I have a doubt in proposed dividend. why proposed dividend is shown in P&L account , it is a sharing of profit only then why it is placed in P&L account,,........ HELP ME EXPERTS
Replies (4)
Can you be more eloborate with an example
Actually we are taking our indirect expenses in to our P&L account and provisions , loss on machinery which indicates expected loss in accordance with prudence concept, but proposed dividend is actually a share in profit. Then why we are taking it to the profit and loss account, it's not an expense , so I have a doubt regarding this
Proposed dividend is definitely an expense . It is an o/s expense liable to be paid by company to it's shareholders of the profits earned
Thank you experts, till now I m not clear in this but I got some ideas.
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