Dividends out of retained earnings?
Psyche
Registered Posts: 187 Dedicated contributor 🦉
Hi there,
I have a client who had a profit in his first year of business (YE 31/10/10). For the first quarter of 2011 he had a loss. However he took a £2500 dividend. Is this ok, since he has the retained earnings to cover the dividend, or does he have to post a profit in the relevant quarter?
Thanks!
I have a client who had a profit in his first year of business (YE 31/10/10). For the first quarter of 2011 he had a loss. However he took a £2500 dividend. Is this ok, since he has the retained earnings to cover the dividend, or does he have to post a profit in the relevant quarter?
Thanks!
0
Comments
-
Dividend from retained earnings is fine (once you deduct the loss to date from those retained earnings).0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 319 NEW! Qualifications 2022
- 157 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership