Question

Unclaimed dividends is shown on the liability side of the balance sheet under the heading of ________________.

• A. Reserves and Surplus
• B. Current Liabilities
• C. Miscellaneous Items
• D. Provisions

Answer 1

Answer: (B)

Unclaimed dividend is the dividend which is being paid by the company but the shareholder has not yet taken the dividend or claimed the dividend. Unclaimed dividend is to be paid by the company as and when demanded and hence is a liability for the company. It is a current liability because usually has be met within 12 months.