Dividend is calculated on:
AAuthorised share capital
BPaid-up share capital
CSubscribed share capital
DIssued share capital
Answer & Solution
Correct answer: B. Paid-up share capital
1. Section 51 — dividend is paid in proportion to amounts PAID-UP on shares.
2. Authorised and subscribed capital are larger figures and not relevant to the dividend calculation.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Declaration and Payment of Dividend_