___________ is Created to stabilise or maintain dividend rate.

Dividend Equalisation Reserve

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Proposed Dividend

No worries! We‘ve got your back. Try BYJU‘S free classes today!

General Dividend

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Dividend Equalisation Reserve
An amount retained from earnings to provide for distribution of a minimum dividend in subsequent business periods.
Dividend equalisation reserve is a revenue reserve that serves as a buffer between a certain dividend level and profit available. Sums are transferrred to this reserve account in good years, and withdrawn from in poor years to maintain the dividend rate.

Suggest Corrections

Similar questions

Q. Reserve created for maintaining a stable rate of dividend is termed as dividend equalisation fund.

A man bought 16 shares at ₹97 and gets a dividend of ₹128. Find the rate of dividend on the shares ?

Q. A higher tax rate would result in dividend payout.

Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.

Q. Which is a better investment : Rs. 200 shares at Rs. 220 which pay a dividend of 10%, or Rs. 100 shares at Rs. 120 which pay a dividend of 12% ?

Join BYJU'S Learning Program