Question

Unclaimed dividend comes under which head and sub head

Answer 1

As per Schedule III of the Companies Act, 2013 unclaimed dividend is shown under the head ‘Other Current Liabilities’ as ‘Unpaid Dividend’ and Provident Fund is shown under the head ‘Employee Benefits Expense’ as ‘Contribution to Provident Fund.

Answer 2

The unclaimed dividend comes under current liability.

• The term "unclaimed dividend" refers to a dividend that has been paid by the firm but has not been taken or claimed by the shareholder.
• Unclaimed dividends are a problem for the corporation since they must be paid as and when they are required.
• It is a current liability because it must normally be paid within a year.