Interim dividend is shown–
(A) in P and L A/c
(B) in P and L appropriation A/c
(C) on the asset side of balance sheet
(D) on the liability side of the balance sheet
Answers
An interim dividend is a distribution to shareholders that has been both declared and paid before a company has determined its full-year earnings.
*Such dividends are frequently distributed to the holders of a company's common stock on either a quarterly or semi-annual basis.
*Interim dividends are dividend payments made before a company's Annual General Meeting (AGM) and final financial statements. This declared dividend usually accompanies the company's interim financial statements. as interim dividend given before finalisation of final statements therefore it cannot be disclosed in profit and loss account or in balance sheet
*such interim dividend is disclosed in profit and loss appropriation account
therefore correct answer is option (b)
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