View Full Version : Investment - dividend
miumiutira
Jun 2, 2012, 04:47 PM
Double entry for below question.
( Received a $287 cash dividend on the investment in the common shares of Hip Hop Ltd Industries)
## special want to understand the dividend is understand what type of account and in my knowledge, above question I will answer like( Dr cash and CR Hop Ltd Industries) but how about the dividend? I am not so understand the concept. Abit confuse.
Thanks for help
paraclete
Jun 2, 2012, 04:51 PM
Double entry for below question.
( Received a $287 cash dividend on the investment in the common shares of Hip Hop Ltd Industries)
## special want to understand the dividend is understand what type of account and in my knowledge, above question i will answer like( Dr cash and CR Hop Ltd Industries) but how about the dividend? i am not so understand the concept. abit confuse.
Thanks for help
A dividend is income, a return on investment, you will credit dividends received and debit cash
miumiutira
Jun 2, 2012, 04:55 PM
Hi,
Before this question, I have another question for investment to this company, I record as DR investment - Hip Hop Ltd Industries, CR cash) but I didn't send a special account for Dividend.
So, I have to creak a new account for dividend income?
Thanks and regards,
Miu
miumiutira
Jun 2, 2012, 04:56 PM
a dividend is income, a return on investment, you will credit dividends received and debit cash
O sorry I don't know I can reply from here, I reply by made a new ask.
paraclete
Jun 2, 2012, 05:03 PM
o sorry i don't know i can reply from here, i reply by made a new ask.
The way this works is we have what we call a thread in which all the comments regarding a particular question are kept together
miumiutira
Jun 2, 2012, 05:08 PM
the way this works is we have what we call a thread in which all the comments regarding a particular question are kept together
Hi,
So my entry actually is like:
Dr investment - Hip Hop Ltd Industries
Cr cash
While received money:
Dr cash
Cr Investment
paraclete
Jun 2, 2012, 06:58 PM
No you must correctly intrepret what is said to you and change your thinking if necessary
An initial investment in a company would be as you describe but when you receive a return on your investment that is income
Dr cash credit dividend received
If you want to keep a record of dividends received you would handle that differently creating an investment register where you record investments and the dividends you receive
miumiutira
Jun 2, 2012, 10:12 PM
Hi,
Do you mind I show you're the question that I record for investment? Because I know this web is not for homework, but I need to understand the concept through this question.
Let me know if you don't mind to teach.
Thanks and regards,
Michelle
miumiutira
Jun 2, 2012, 10:39 PM
No you must correctly intrepret what is said to you and change your thinking if necessary
an initial investment in a company would be as you describe but when you recieve a return on your investment that is income
dr cash credit dividend recieved
If you want to keep a record of dividends recieved you would handle that differently creating an investment register where you record investments and the dividends you recieve
Hey,
I got what your mean, thank you so so so much.
Regards,
Miu