[Solved] Divisible profit should not include

Divisible profit should not include

a) Interest on capital

b) Capital

c) Depreciation

d) None of the above

Answer: (d) Divisible profits should not include capital profits i.e., the profits of extraordinary nature (non-recurring profits) or profits arising from revaluation or sale of fixed assets or redemption of fixed liabilities. Dividends cannot be declared except out of divisible profits.

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