Lets start with an example.
A company had 100000 shares outstanding (par value of Rs 1). The company plans to declare a 1:1 dividend.
The following entry is made at the closure of financial statements
Provision for proposed dividend 100000
Appropriation to PL account 100000
In the first quarter of the next financial year, the dividend is declared.
The entry is
Provision for proposed dividend 100000
Dividend Payable 100000
On the date of payment, the company is unable to pay a few shareholders amounting to Rs 10000, due to technical issues.
The entry for the payment is
Dividend Payable 100000
Unclaimed dividend 10000
Cash 90000
And another entry for earmarking the fund for unclaimed dividend
Cash earmarked for unclaimed dividend 10000
Cash 10000
Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. unclaimed money
ReplyDelete