Answer to Question #142980 in Finance for Neha singh

Question

You purchased 10 shares of L& T Company last year. On 5th March 2019, the company has declared a dividend Rs 50 per share. The income is earned but not yet collected in your account during this financial year.

Answer 1

If the accrual method is applied, when applying the accrual method, income is recognized in the reporting (tax) period in which it occurred, regardless of the actual receipt of funds, other property (works, services) and (or) property rights. If cash, then upon receipt of money.