Please read the note below. If dividend is not paid on equity shares then we have to add it for preference shares or not?

Dear Student, 

Preference shares are those which hold a preferential right over equity shares in terms of dividend and at the time repayment of capital. So, in the question, if we have been given both the categories of shares then dividend must be paid to preference shareholders and later on to equity.

​​​​Hope this clears your doubt.

Thanks and Regards
 

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