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Commerce · Q1052

Accounting

Graduate and Post Graduate · Commerce · question 1052

Q1052

When dividend is actually received on due date

A.
the pro-rata amount relating the period before the date of acquisition is entered in the income column (Cr) of the following investment account
B.
the pro-rata amount relating to the period after the date of acquisition is entered in the income column (Cr) of the investment account
Answer
C.
the entire amount is entered in the income column (Dr) of the investment account
D.
the entire amount is entered in the capital column (Cr) of the investment account

Answer: Option B

Solution

Answer: Option B
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