Question

What will be the treatment of proposed dividend in cash flow statement.. accountancy

Answer 1

Explanation:

proposed dividend is a financing activities

Answer 2

Answer:

First you need to understand what proposed dividend actually is . Proposed dividend is the dividend declared or proposed to be distributed among the shareholders of the company during a financial year which will be paid in the next financial year .

In cash flow you deal with two types of it , previous year’s proposed dividend and current year’s proposed dividend.

While you calculate “Net Profit before tax and extra ordinary items” in the working notes ADD Current year’s proposed dividend to the Net Profit.

Explanation: