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Rtpmay20
Corporate & Other Laws
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 Therefore out 2 crore withdrawn 4o lakhs is set off and balance only 1.6 crore is there to pay dividend .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 ?
Answers (10)
Thread Starter
Swathi KrishnaIt 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
Thread Starter
Swathi KrishnaBut 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
Thread Starter
Swathi KrishnaSo 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
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