Question

Interim dividend is shown ______________.

• A. in profit & loss account
• B. in profit & loss appropriation account
• C. on the assets side of balance sheet
• D. on the liability side of balance sheet

Answer 1

The correct option is B in profit & loss appropriation account

An interim dividend is declared between two annual general meetings. As per regulation 86 of table A, the board may from time to time pay to shareholders such interim dividends as it appears to be justified keeping in view the profits of the company. The article of association may allow for the payment of such a dividend if table A has not been adopted by the company.

An interim dividend, like the final dividend, is an appropriation of profits that has to be shown on the debit side of the profit and loss appropriation account.