Question

Divisible profit does not include

• A. Reserve fund
• B. Profit of revaluation of asset
• C. pre-incorporation profit
• D. dividend equalization profit

Answer 1

Answer:

B. Profit of revaluation of asset

Divisible profits are the profits which are available for distribution as dividend. Every profit is not divisible profits. Capital reserve arising from revaluation of assets cannot form part of divisible profits.