Why isn't dividend paid on prefrence share calculated(10per. Prefrence share capital.) In the solution of this ques.it is the last ques of ts grewal
Hi Nandu,
Ideally the dividend on the opening balance of Preference Share Capital should have been accounted for while preparing the Cash Flow Statement.
However, the answer as per the textbook does not consider the impact of this adjustment. Hence, the solution on the website has been aligned with the answers given in the book.
If you get such a question in the examination, it is suggested that you should consider the impact of dividend while preparing the Cash Flow Statement.
Ideally the dividend on the opening balance of Preference Share Capital should have been accounted for while preparing the Cash Flow Statement.
However, the answer as per the textbook does not consider the impact of this adjustment. Hence, the solution on the website has been aligned with the answers given in the book.
If you get such a question in the examination, it is suggested that you should consider the impact of dividend while preparing the Cash Flow Statement.