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    enfloran's Avatar
    enfloran Posts: 3, Reputation: 1
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    #1

    Jan 25, 2009, 04:06 AM
    Debits & Credits for Dividends Transactions
    Hi
    Can you please refresh me wich are the debits and credits for the following transactions:

    • Declared Dividends
    • Paid Dividends


    Also I need the account classification, i.e. assets,liabilty, equity, income or expense

    For Example:
    If one business declared dividends for $10,000, how I record the transaction, what are the accounts affected and wich is the account classification and thereof how it will be presented on the statements

    I Thinks it is

    Dividends (equity)
    Dividends Payable (liabilty)

    Dividends Payable (liabilty)
    Cash (asset)

    The transaction will be presented on the Balance Sheet
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
    		  
    #2

    Jan 25, 2009, 05:07 AM

    Can you please refresh me which are the debits and credits?

    DEBITS = ALL ASSETS + ALL EXPENSES
    CREDITS = ALL LIABILITIES + ALL INCOMES

    FORMULA = A + E = L + I

    Please remember this for ever.
    You will never go wrong again.
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
    		  
    #3

    Jan 25, 2009, 05:08 AM
    ALSO.

    Equity is another form of a LIABILITY .
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