TaxTMI 
TaxTMI 
This was uploaded earlier also for advice, Kindly advice | ||
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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 | ||
| Post Reply | ||
Dividend Payment for Financial Year 2013-14
Bhairob Chandra Bor
Declaration of dividend rules may not prevent recognising a proposed dividend in prior year accounts; check applicable depreciation requirements. Whether a proposed dividend declared by the board before adoption of year end financial statements may be recorded in the profit and loss account for that financial year when final declaration and payment will occur later, and whether depreciation must be recalculated under Schedule II of the new Companies Act despite audits performed under the prior Act. (AI Summary)
