Question

Unclaimed dividend is shown on the liability side of the balance sheet of a company as ___________.

• A. Share Capital
• B. Current Liabilities
• C. Reserves & Surplus
• D. Non-Current Liability

Answer 1

Answer: (B)

Current Liabilities

Share capital is reported by a company on its balance sheet in the shareholder's equity section.

Unclaimed dividend is a short term liability which need to be paid in the next years. This has to be shown as current liability in balance sheet.

Unclaimed dividend is shown on the liability side of a balance sheet under the head “Reserves and Surplus” along with capital. If a company incurs losses then it is not created.

Non-current liabilities are reported on a company's balance sheet along with current liabilities, assets, and equity.