DIVISIBLE PROFIT
- One of the important functions of company accounting is to determine the amount of profits which is available for distribution to the shareholders as dividend.
- This is necessary since the amount of profits disclosed by the Profit & Loss Account, in every case, is not available for distribution.
- The availability of profits for distribution depends on a number of factors, e.g., their composition, the amount of provisions and appropriations that must be made out of them in priority, etc.
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