Question

for treatment of cash flow statement which year proposed dividend will we take previous aur current
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Answer 1

Answer:

Proposed dividend of last year is paid in the current year, But in current year's financial statement this payment is not shown as an expense in the statement of profit and loss account, It is the liability of dividend i.e last years proposed dividend which is paid in the current year.

Therefore payment of last year's proposed dividend would result in the reduction of a liability