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Can a company pay a dividend from the asset revaluation or realization reserves?
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Can dividend be declared out of revaluation of fixed assets justify?
No, Dividend Can't be declared out of revaluation of fixed assets. dividend may be declared by a company for that year out of the accumulated profits earned by it in previous years and transferred by it to the reserves, But not from revaluation reserve as its a unrealized profit...
What is difference between revaluation account and realization account?
Revaluation account and Realisation account both are nominal account. the purpose of revaluation account is taking the effect of fluctuations in asset & liabilities in their books while purpose of realisation account is to closing the books of accounts of a comapany or a firm. Revaluation a/c is made when any fluctuation in value of an asset takes place. realisation a/c is made at the time of liquidation of a company or a firm.
What is a simple explanation of a dividend?
A dividend is a share of a company's profit paid to each stockholder.
How do you calculate the statutory reserve of a company?
what are the statutory reserves of a company?
Does the issuance of a stock dividend increase the company's assets?
No. Dividend payout essentially means that the company pays money to all its shareholders and hence its assets will effectively decrease.
Can dividend be declared out of revaluation of fixed assets justify?
No, Dividend Can't be declared out of revaluation of fixed assets. dividend may be declared by a company for that year out of the accumulated profits earned by it in previous years and transferred by it to the reserves, But not from revaluation reserve as its a unrealized profit...
Where and under which heading is the unclaimed dividend disclosed in the balance sheet of the company?
reserves surplus
What is difference between revaluation account and realization account?
Revaluation account and Realisation account both are nominal account. the purpose of revaluation account is taking the effect of fluctuations in asset & liabilities in their books while purpose of realisation account is to closing the books of accounts of a comapany or a firm. Revaluation a/c is made when any fluctuation in value of an asset takes place. realisation a/c is made at the time of liquidation of a company or a firm.
What is the accounting treatment of non divisible profit?
DIVISIBLE PROFITS :-According to black and white publishing company (1901) "Profit available for dividend means net profits after making any deduction which the directors can duly make."Profit which can be distributed legally in the form of dividends to the shareholders of the company are called divisible profits.There is no any particular rule about the determination of profit. By company law has laid down the following rules or principles which guides us to determine the divisible profits.PRINCIPLES OF DIVISIBLE PROFIT :-Following are the important principles of divisible profits :1. According The Company Rules :-The articles of association are the rules of the company. The directors are entitled to distribute the profits under rules. They also follow the company law. The dividend can be paid out of revenue profit.2. Follow The Court Cases :-While calculating the divisible profits, the court cases must be kept in mind. The auditors must know the decisions of the courts announced time to time.3. Profit Not Out Of Capital :-The capital can not be used to pay dividend. The revenue profits can be used for the payment of dividend.4. Approval Of Shareholders :-In the annual general meeting shareholders may approve the rate of profit recommended by the directors. So divisible profits can be used to pay as dividend after approval.5. Right Of Proposal :-The directors can purpose the rate of dividend out of divisible profits. After completing the legal formalities the directors can decide the dividend.6. Undistributed Profit :-It is the right of the directors to use such profit for the payment of dividend at the end of a year. It is a revenue of the provision year.7. Depreciation :-Before declaring revenue profits the depreciation on fixed assets must be charged. In manufacturing company it is compulsory to charge depreciation before the declaration of profits.8. Secrete Reserves :-If according the articles association it is allowed to create and use the such reserves then these can be used for the payment of dividends.9. Capital Profits :-Under certain conditions the capital profit can be used to pay dividend but articles association should allow the distribution of capital profit as dividend.10. Capital Loss :-Inspite of capital loss the dividend can be paid out of revenue profits. The capital profit must be used to eliminate capital loss first and then surplus can be used to pay dividends.11. Loss Of Provision Year :-If a company suffers a loss in one year but earns profit next year. Such loss can be adjusted by the company from benefit of the current year.12. Revaluation Of Assets :-After the revaluation of asset, if it becomes surplus then it can be used after realization. Profit may be paid after selling the assets.13. Revenue Profits :-According the principle of divisible profit dividend must be paid out of revenue profit. But it is essential that calculation should be correct.14. Asset Goodwill Written Down & Up :-If a company has written down good will out of profits, it may also write up this asset, with the appreciation. But the value written up should not excess than the true value.
What is the meaning of proposed dividend?
Proposed Dividend means a dividend that is paid by the company that the end of a finical year.
What is the importance of dividend history in finances?
Dividend history is important especially for stock investing. Without knowing the dividend history for a company, you will never know if the company will be reliable to pay the dividend every quarter.
What is dividend receivable?
Dividend is recieved by company shareholder as a profit and according to their shares.
What is dividend distribution tax?
Dividend distribution tax is the tax levied by the Indian Government on companies according to the dividend paid to a company's investors. As per existing tax provisions, income from dividends is tax free in the hands of the investor. There is a levy of 15% of the dividend declared as distribution tax. This tax is paid out of the profits/reserves of the company declaring the dividend.  The provisions of this Section applies to a domestic company for any assessment year, on an amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise)  The Company is required to pay the Dividend Distribution Tax within 14 days from the date of declaration or distribution or payment of any dividend whichever is earlier.  The said dividend distribution tax is in addition to the income tax chargeable on the total income of the Company and the same shall be payable @15% and the same shall be increased by Surcharge @10%, and such aggregate of tax and surcharge shall be further increased by an Education cess @2% and higher education cess 1% .  The Section applies to dividend payments made either out of current or accumulated profits.  The dividend so paid will be eligible for exemption for the shareholders under Section 10(34).  The Dividend Distribution Tax is payable by a Domestic Company even if no income-tax is payable on its total income.
What is a simple explanation of a dividend?
A dividend is a share of a company's profit paid to each stockholder.
What is the difference between dividend proposed and dividend paid?
A company proposes a dividend to be paid to shareholders. The shareholders vote on this and the dividend that is actually paid may differ from that proposed.
What is dividends tax?
Dividend distribution tax is the tax levied by the Indian Government on companies according to the dividend paid to a company's investors. As per existing tax provisions, income from dividends is tax free in the hands of the investor. There is a levy of 15% of the dividend declared as distribution tax. This tax is paid out of the profits/reserves of the company declaring the dividend.  The provisions of this Section applies to a domestic company for any assessment year, on an amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise)  The Company is required to pay the Dividend Distribution Tax within 14 days from the date of declaration or distribution or payment of any dividend whichever is earlier.  The said dividend distribution tax is in addition to the income tax chargeable on the total income of the Company and the same shall be payable @15% and the same shall be increased by Surcharge @10%, and such aggregate of tax and surcharge shall be further increased by an Education cess @2% and higher education cess 1% .  The Section applies to dividend payments made either out of current or accumulated profits.  The dividend so paid will be eligible for exemption for the shareholders under Section 10(34).  The Dividend Distribution Tax is payable by a Domestic Company even if no income-tax is payable on its total income.
What time can you sell shares to qualify for the dividend?
You can sell shares to qualify for the dividend on or after the ex-date (ex-dividend date), which will be announced the company
