In company account, dividend payments are effected in which of the following accounts?
FINANCIAL
JAMB 2023
In company account, dividend payments are effected in which of the following accounts?
- A. realization
- B. current
- C. appropriation
- D. capital
Correct Answer: C. appropriation
Explanation
In company accounting, dividend payments are effected in the appropriation account. The appropriation account is a part of the profit and loss account where the net profit is appropriated or distributed among various heads like dividends, general reserve, etc.
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