When proposed dividend made or paid during the year is given in adjustment then what does it imply Why - Accountancy - Cash Flow Statement

Question

When proposed dividend made or paid during the year is given in
adjustment then what does it imply? Why it is given in adjustment
inspite it is already given in balance sheet showing the amount of
current year and past year?also explain the proposed dividend a/c

Nitin Verma · Accepted Answer

Dear Student,

Proposed dividend given in adjustment is merely an information It
is treated in a usual manner Like proposed dividend of last year
will be paid this year and for current year it is proposed so it
will be added to net profits before tax

Regards

When proposed dividend made or paid during the year is given in adjustment then what does it imply? Why it is given in adjustment inspite it is already given in balance sheet showing the amount of current year and past year?also explain the proposed dividend a/c.