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In company account, dividend payments are effected in whi...

In company account, dividend payments are effected in which of the following accounts?

A.

Realization

B.

Current

C.

Appropriation

D.

Capital

Correct answer is C

In company accounting, dividend payments are effected in the appropriation account. The appropriation account is a part of the profit and loss account where the net profit is appropriated or distributed among various heads like dividends, general reserve, etc.