INTERPRETATION

(1) For the purposes of Parts I and II of this Schedule, unless the context otherwise requires :  the expression ‘provision’ shall, subject to sub-clause (2) of this clause, mean any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or retained by way of providing…

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Interim Dividends

A company may distribute part of its profits during the two annual general meetings. That means, a company may declare dividends before the close of the accounting year and finalisation of accounts. Regulation 86 of Table ‘A’ of Schedule I to the Companies Act, 1956, provided that the Board may from time to time pay…

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AUDIT OF DIVIDENDS

Verification of Dividends In PE-II study material on Accounting, the various conditions subject to which profits are earned by a company can be distributed as a dividend have been discussed. Therefore, only then procedure for the verification of payment of dividends is stated below : 1. Examine the company’s Memorandum and Articles of Association to…

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Interest on Debentures

The payment of interest should be vouched with the acknowledgment of the debenture holders, endorsed warrants and in the case of bearer debentures, with the coupons surrendered. The total amount paid should be reconciled with the total amount due and payable with the amount of interest outstanding for payment. Interest on debentures is payable whether…

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