Dividend Payment for Financial Year 2013-14

[Bhairob Chandra Bor]

Respected Expert,

we want to entered the proposed dividend in the profit & loss a/c for the year ended 2013-14. dividend will be declared & paid after the declaration of final dividend for the financial year 2013-14 in AGM will be held in June, 2014. To close our balance sheet we have to entered that dividend amount  (as proposed in the Board meeting recently held while adopting the balance sheet at the board meeting). We have audited our books for 2013-14 as per the Companies Act 1956. kindly advice in this situation is it necessary to calculate the depreciation as per schedule II as per the new companies act 2013?  As per our understanding the new companies act u/s 123 -declaration of dividend will not apply for entering the proposed dividend amount (actual declaration & payment will be In June, 2014 ) in the balance sheet of 2013-14. Kindly advise.

Regards,

bcb     

AI Summary

Inquiry on Accounting Treatment for Proposed Dividend Post-AGM 2014 and Depreciation Under Schedule II, Companies Act 2013. A user inquired about the accounting treatment for a proposed dividend for the financial year 2013-14, which would be declared and paid after the annual general meeting in June 2014. They sought advice on whether it was necessary to calculate depreciation according to Schedule II of the Companies Act 2013, despite having audited their books under the Companies Act 1956. The user believed the new Act's section on dividend declaration did not apply to entering the proposed dividend in the balance sheet. The response suggested that the issue might have already been resolved.