As ler latest amendment (from Year 2018-2019), the Proposed dividend will not appear in the Balance Sheet. The dividend payable will be shown only in the adjustment. The proposed Dividend of the current year will not be considered while doing the Cash flow Statement. The proposed dividend of the previous year will be added back to Net profit under Operating Activities and the same amount (Proposed dividend of the Previous year) will be deducted under Financing Activities.
Be careful when you solve the previous question papers (any of the Publications) as the previous solutions are different which were prepared based on the old concept.
