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Final Dividend after bonus /right

Accountancy

If final dividend (suppose 20%) is received after the issue of bonus shares and/or eight shares, then Will the value of shares on which 20% is calculated include bonus and/or right shares? Eg. Opening bal. = 20,000 shares Bonus (1:2) = 10,000 shares Right (1:3) = 10,000 shares Now, Final Dividend is declared and received @ 20%. This 20% will be on original 20,000 shares or total 40,000 shares?


Ishika Goel 282

Ishika Goel 282

CA Final

3K+

23-Feb-21 19:03

279

Answers (1)

It depends on how company declares dividend. If nothing is mentioned, all shares held on record date qualify for dividends.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

23-Feb-21 21:28

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