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Rtpmay20

Sir, in this question of rtp may20 , the loss for the year is 40 lakhs and in (iii) of the rule 3 says the amount of the losses should be set off rite . Therefore out 2 crore withdrawn 4o lakhs is set off and balance only 1.6 crore is there to pay dividend . But the company proposes only 2 crore,so therefore (iii) is not satisfied rite . That means company cannot declare 2 crore as dividend rite ? Plzz can u check this ?

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

13-Nov-20 13:20

23

Answers (10)

The rule also talks about usage of free reserves. please check that


Sriram Somayajula

Sriram Somayajula

Admin

13-Nov-20 13:39

It is said amount do dawn from the reserves rite ?

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

13-Nov-20 14:39

It is said amount do dawn from the reserves rite ?

Company can draw 2.4 crores and declare 2 crores dividend right? drawal of 2.4 cr is within limits correct - question does not say that are drawing 2 cr, but it says they are declaring 2 cr as dividend


Sriram Somayajula

Sriram Somayajula

Admin

13-Nov-20 14:49

But in fourth point, it is given after such withdrawal from free reserves And institute had shown such withdrawal as 2 crore from reserves(in the pic below)

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

14-Nov-20 09:10

But in fourth point, it is given after such withdrawal from free reserves And institute had shown such withdrawal as 2 crore from reserves(in the pic below)

In point 4 they mentioned amount drawn is 2 which is incorrect as they will have to draw 2.4 to offset CY losses. But otherwise Based on question ( in which no specifics of amount drawn are detailed) the Company can declare a dividend of Rs.2 Cr


Sriram Somayajula

Sriram Somayajula

Admin

14-Nov-20 09:14

K


Swathi Krishna

Swathi Krishna

CA Inter

7K+

14-Nov-20 10:01

So in exam will we get mark if we write 2.4 crores


Swathi Krishna

Swathi Krishna

CA Inter

7K+

14-Nov-20 10:02

So in exam will we get mark if we write 2.4 crores

You have to respond like what ICAI gave answer in RTP solution and you also have to say that the company has to draw 2.4 cr and then set off 40 lacs and then pay dividend of Rs.2 cr if you give full and proper explanation with reasoning, you will get marks


Sriram Somayajula

Sriram Somayajula

Admin

14-Nov-20 10:19

K


Swathi Krishna

Swathi Krishna

CA Inter

7K+

14-Nov-20 10:20

Thax sir


Swathi Krishna

Swathi Krishna

CA Inter

7K+

14-Nov-20 10:20