Why are dividends issued on the paid up equity share capital of the Company https://i.imgur.com/0yyIBKD.png and not on the total equity of the company https://i.imgur.com/yQmz3IF.png ? Basically the equity is what shareholders own (Assets - Liabilities).
Menu
Why are dividends issued on the paid up equity and not on the total equity of the company?
Replies (1)
All equity has reserves and retained earnings included in it. That is why dividend is for share capital holder who fully paid up for shares
Recent Topics :
- Invoice made but goods not sent
- How Do CA Firms Manage Client Document Collection
- How do CA firms manage pending client documents du
- How to find a good CA
- Rcm on rent paid
- Clarify on GST Application
- Residential status for overseas students visitin
- Capital Gains Tax
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
Related Topics :
CAclubindia
