Buyback of shares

Accountancy

Is dividend equilisation fund free reserve?

Angel Maria Varghese

CA Final

★ 9K+

04-Jan-23 10:20

568

Answers (2)

Best Answer

Yes, a dividend equalisation fund is a free reserve because free reserves are deemed to be created for giving dividends to the shareholders. This fund ensures that equal dividend to be declared irrespective of profits of enterprise. Hope you understood

siva chaitanya

CA Final

★ 13K+

04-Jan-23 18:29

Yes, it is a free reserve.

Varshaa M

CA Final

★ 35K+

20-Jan-23 23:18