About issue of dividends

Others

Can a company issue dividends from their reserves?? Not just from their profit

Dhakshana Dhakshana

CFA L2

★ 18K+

07-Jan-22 17:10

634

Answers (4)

From profits transferred to General Reserves

CA Suraj Lakhotia

Admin

07-Jan-22 18:34

CA Suraj Lakhotia Admin

From profits transferred to General Reserves

I can't understand sir...say example if a company earn 40cr of profits if the dividend issued amount is 60cr can they take balance amount from general reserve?

Thread Starter

Dhakshana Dhakshana

CFA L2

★ 18K+

07-Jan-22 18:38

Yes. After fulfilling certain conditions

CA Suraj Lakhotia

Admin

07-Jan-22 18:43

CA Suraj Lakhotia Admin

Yes. After fulfilling certain conditions

Thank you sir

Thread Starter

Dhakshana Dhakshana

CFA L2

★ 18K+

07-Jan-22 18:59