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.

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.


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