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Investment Account

Theory Of Investment Account

Advance Financial Accounting (B.com)


Q. What is Cum-dividend/Cum-interest quotation?
Ans. Cum dividend quotation means price received including dividend or Interest accrued on the investment up to the date of sale. Therefore it should be split-up into nominal charge.
*Dividend in case of Equity Shares and Preference Share.
*Interest in case of Debenture, Government Bonds.

Q. What is ex-dividend/ex-interest quotation?
Ans. When the accrued interest/dividend up to the date of sale is not included in the selling price than it is called as ex-dividend or ex-interest price.



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