Acquired shares of X company worth 100000, company declared 10% as dividends,

Acquired shares of X company worth 100000, company declared
10% as dividends, but not paid to u. Now what entry u pass
while purchasing those shares, what entry u pass when
company declared dividents but not paid, and what entry u
pass when u receive the dividend..?

Question Posted / raghavender rao keligari

1 Answers
3304 Views
Franklin Templeton, I also Faced
E-Mail Answers

Acquired shares of X company worth 100000, company declared 10% as dividends, but not paid to u. N..

Answer / anjani

when shares Purchased"

Investment in shares of X Ltd A/c Dr 100000
To Cash/Bank 100000

When dividend declared:

dividend receivable A/C Dr 10000
Dividend 10000
When dividend received:
Cash/bank A/c Dr 10000
To Dividend Receivable 10000

Is This Answer Correct ?

2 Yes

1 No

Post New Answer

More Accounting AllOther Interview Questions

what is contingent asset

5 Answers Genpact,

what is the method for calculation of profitability statement?

1 Answers Omaxe,

who is the payee of the promissory note

1 Answers Accenture,

what is a reducing balance method and depreciation fund investment method and 2 diffrences?