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Investments from group-01

Accountancy

In that they both from dividend income on credit side but they recorded on different column one in dividends and other one in amount column.can anyone help me to get out of this doubt ??ð?¤?

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Hemanth Vadagam

Hemanth Vadagam

CA Inter

0

22-Apr-22 17:43

437

Answers (2)

The dividend that we write in Dividend column is the dividend originally received by us. If we were having shares right from the very beginning, we receive it as a dividend and write the same In dividend column. But, if we've acquired shares in between, the dividend so received isn't our dividend. It is the dividend of our previous owner and hence we adjust that to price and write in Amount column


If dividend is pre acquisition then it is adjusted against cost of investment. If dividend is post acquisition, it is treated as income.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

22-Apr-22 19:50

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