View Full Version : Dividend journal entry
KAT4
Feb 8, 2007, 05:03 PM
Can someone please help me with this journal entry:
The company declared and distributed cash dividend totaling $6,000 to its shareholders.
I think the journal entry is this, am I right?
Dividends declared 6,000
Cash 6,000
Or is it
Dividends Payable 6,000
Cash 6,000
KongTheKonqueror
Feb 8, 2007, 07:25 PM
One the declared date it would be,
Dividends 6,000
Dividends Payable 6,000
When paid it would be,
Dividends Payable 6,000
Cash 6,000
Or if done on the same date it would only be,
Dividends 6,000
Cash 6,000
CaptainForest
Feb 8, 2007, 10:26 PM
I agree with Kong.
sajalarora
Feb 9, 2007, 01:04 AM
The proper treatment regarding dividend journal entries are as below:
At the time of dividend declared,
Profit &loss appropriation a/c... dr 6,000
To proposed dividend a/c 6,000
As dividend are first appropriated from the profit of the company.
At the time of dividend paid to shareholders
Proposed dividend a/c... dr 6,000
To dividend a/c 6,000
Dividend a/c... dr 6,000
To cash a/c 6,000
Mansi09
Apr 19, 2009, 11:50 AM
Can some on please help me with this journal entry
jaN.16- delared a cash dividend and payable feb.15 to stock holders of record on feb.5
morgaine300
Apr 19, 2009, 05:41 PM
can some on please help me with this journal entry
jaN.16- delared a cash dividend and payable feb.15 to stock holders of record on feb.5
Kong pretty well already answered what these journal entries are, other than the dollar amount being different of course.
AAMIRSAIFULLAH
Nov 17, 2009, 07:33 AM
First when divided is declared the entry will be
Debit DIVIDEND XXX
Credit to DIVIDEND PAYABLE XXX
Debit RETAIND EARNINGS XXX
Credit DIVIDEND XXX
AND WHEN PAYMENT
Debit DIVIDEND PAYABLE XXX
Credit CASH XXX
S.Mehdi
Dec 16, 2009, 09:36 AM
When declared,
Retained earnings 6000
Dividend payable 6000
When paid,
Dividend payable 6000
Cash 6000
hongoliu
Mar 23, 2010, 10:26 PM
Correct answer:
When declared:
Dr Dividends declared xxx
Cr Dividends payable xxx
When paid, there should be 2 journals
Dr Dividends paid xxx
Cr Dividends Declared xxx
Dr Dividends payable xxx
Cr Cash xxx
And if you paid by Retained Earnings
Dr Retained earnings
Cr Share capital
morgaine300
Mar 28, 2010, 01:52 AM
The post is old. We do not just give answers away to homework - we try to help people understand it. (i.e. answers without explanations aren't worth a lot). Third, your "correct" answer is incorrect.
acepj
Apr 17, 2010, 08:29 AM
As per IFRS (Cash @ Face Amount and Property Dividends @ Fair Value)
Upon declaration, the entry is
dr: Retained Earnings Pxxxx
Cr: Dividends Payable Pxxxx
Upon recording
Memorandum entry only.
Upon payment Payment
dr: Dividends Payable Pxxxx
Cr: Cash Pxxxx
nil_anush
Apr 30, 2010, 03:31 AM
Hi, I guess Amir saifullah is very much correct on That journal. But the process can be more easier if u just do:
When you declare the dividend: Accrual basis
Dr Retained Earnings
Cr Dividend payable
When you pay the amount:
Dr Dividend payable
Cr Cash/Bank
And there is no such entry named Dividend declared, If u say it, where you will give it effect into the FS. Or will you make a new General Ledger for that, Its funny man.
nicolitz
Nov 3, 2010, 02:06 PM
Debit Retained Earnings XX
Credit Dividend Payable XX
Declaration of Dividends.
Debit Dividend Payable XX
Credit Cash or Checking Acct XX
Payment of Dividend to Stockholders.
geoaguilar
Nov 19, 2011, 08:06 PM
How do I record the following entry: paid property taxes of $5200
pready
Nov 20, 2011, 11:24 AM
Debit Property Tax Expense for the amount paid
Credit Cash for the amount paid
ckania
May 3, 2012, 06:58 PM
1. At declaration date:
Dr Retained Earnings
Cr Dividends Payable
2. At payment date:
Dr Dividends Payable
Cr Cash
sachin_25
Jun 11, 2012, 03:28 AM
Can you please tell me divided is which head of balance sheets shows
paraclete
Jun 11, 2012, 05:24 AM
Such a long answer for a small problem
Shaarif
Mar 26, 2013, 05:40 AM
On declaration
Dr: Retained Earnings 6000
Cr: Dividend Payable 6000
On payment
Dr: Dividend Payable 6000
Cr: Cash/Bank 6000
pready
Mar 27, 2013, 10:31 AM
This is a very old post and it should be closed.