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Secretarial Practice · Class 12 Commerce

Ch 10Dividend and Interest — Class 12 Secretarial Practice, concept-first.

Dividend and Interest is a core chapter of the Maharashtra HSC (Std XII) Secretarial Practice syllabus prescribed by the Maharashtra State Board of Secondary and Higher Secondary Education (MSBSHSE).

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Key concepts

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Dividend — Meaning, Definition and Types

Dividend is the share of a company's distributable profit paid out to its shareholders in proportion to their shareholding.

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Chapter contents

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Overview

Dividend and Interest is a core chapter of the Maharashtra HSC (Std XII) Secretarial Practice syllabus prescribed by the Maharashtra State Board of Secondary and Higher Secondary Education (MSBSHSE).

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Meaning and Definition of Dividend

In ordinary business usage, dividend is the portion of a company's distributable profit that the company decides to distribute among its shareholders, in proportion to the shares they hold, instead of…

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Types of Dividend

The Maharashtra HSC Secretarial Practice syllabus asks you to know dividend along two independent classifications: (A) by when it is declared during the financial year — interim vs final; and (B) by w…

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Legal Provisions for Declaration and Payment of Dividend

Section 123 — Sources of dividend. No dividend may be declared or paid by a company for any financial year except: 1.

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Procedure for Payment of Dividend

In practice, a company (through its Board and its Company Secretary) follows these broad steps to pay a final dividend:

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Interest — Meaning, and Interest on Debentures and Deposits

Meaning of Interest. Interest is the price or compensation a borrower pays to a lender for the use of the lender's money over a period of time.

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Distinction between Dividend and Interest, and the Secretary's Duties

Distinguish between Dividend and Interest:

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 27 questions27 questions
  1. Q1Dividends can be paid out of capital. (a) True (b) FalsePreview
  2. Q2Correct the underlined word and rewrite the following sentence. **Preference** shareholders get dividends from residual profits.Preview
  3. Q3Explain the following term/concept. Rate of Dividend.Preview
  4. Q4Explain the features of Interest.Preview
  5. Q5Justify the following statement: Unpaid dividends cannot be used by the company.Preview
  6. Q6Find the odd one. (a) Final Dividend (b) Interim Dividend (c) InterestPreview
  7. Q7Diamond Company Limited is considering to declare Interim Divided: In how many days of declaration it should transfer the funds to Dividend…Preview
  8. Q8Distinguish between the following: Interim dividend and Final dividend.Preview
  9. Q9Justify the following statement. Equity shares get last priority in dividend.Preview
  10. Q10______ is a return paid to creditors by the company. (a) Dividend (b) Interest (c) RentPreview
  11. Q11Correct the underlined word and rewrite the following sentence: Dividend is recommended by **shareholders** .Preview
  12. Q12Study the following case/situation and express your opinion: GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2019-20. Is the…Preview
  13. Q13Distinguish between the following: Dividend and InterestPreview
  14. Q14Explain Interim Dividend.Preview
  15. Q15Correct the underlined word and rewrite the following sentence. Dividend must be paid within **60 days** of its declaration.Preview
  16. Q16Study the following case/situation and express your opinion. Sai Company Ltd. decides to pay interim dividend: Is the Board justified to dec…Preview
  17. Q17Distinguish between the following: Interim dividend and Final dividend.Preview
  18. Q18Justify the following statement. Dividend is paid out of the profits of the company.Preview
  19. Q19Write a word, term, or phrase which can substitute for the following sentence: The return on investment is paid to the creditors by the comp…Preview
  20. Q20Correct the underlined word and rewrite the following sentence. **Dividend** is payable every year, irrespective of the profits made by the…Preview
  21. Q21Study the following case/situation and express your opinion: Harsh Company Limited decides to pay an interim dividend. Is the board justifie…Preview
  22. Q22Distinguish between the following: Dividend and InterestPreview
  23. Q23Explain Interim Dividend.Preview
  24. Q24Dividends should be distributed within ______ days from its declaration. (a) 45 (b) 21 (c) 30Preview
  25. Q25Write a word / term / phrase which can substitute the following statement: Dividend declared by a company between two annual general meeting…Preview
  26. Q26Distinguish between the following: Final dividend and Interim dividendPreview
  27. Q27Write short notes on the following: Legal provisions regarding unclaimed / unpaid dividendPreview

More questions

11 Q
+Show 3 questions3 questions
  1. Q3State the meaning of dividend and explain who has the authority to declare (i) an interim dividend and (ii) a final dividend.Free
  2. Q4State any four sources out of which a company may declare and pay dividend under the Companies Act, 2013.Preview
  3. Q5What is the Unpaid Dividend Account? Within how many days must a company transfer unclaimed dividend to this account?Preview
+Show 2 questions2 questions
  1. Q1As per Section 2(35) of the Companies Act, 2013, the term 'dividend' includes: (A) only the final dividend declared at the Annual General Me…Free
  2. Q2Under Section 123(3) of the Companies Act, 2013, if a company has incurred a loss during the current financial year up to the end of the qua…Preview
+Show 1 question1 question
  1. Q6Distinguish between Dividend and Interest (any four points).Preview
+Show 2 questions2 questions
  1. Q7Interest on debentures is a charge against profit, while dividend is an appropriation of profit.Free
  2. Q8A company that fails to pay dividend within 30 days of declaration faces serious consequences under the Companies Act, 2013.Preview
+Show 3 questions3 questions
  1. Q9Explain in detail the legal provisions relating to declaration and payment of dividend under the Companies Act, 2013.Free
  2. Q10Explain the procedure to be followed by a company for the payment of dividend, and state the duties of the Company Secretary in this regard.Preview
  3. Q11What is the Investor Education and Protection Fund (IEPF)? State the amounts credited to it and the purposes for which it is utilised.Preview