Dividend Payments
Wes
Registered Posts: 1
Hi,
Could someone confirm that any Dividend payments made are posted direct to the balance sheet (not on the Profit & Loss?)
And what sub catergory should the dividend payments go under on the balance sheet?
Many thanks in advance for any feedback,
Wes
Could someone confirm that any Dividend payments made are posted direct to the balance sheet (not on the Profit & Loss?)
And what sub catergory should the dividend payments go under on the balance sheet?
Many thanks in advance for any feedback,
Wes
0
Comments
-
Correct - although when you say 'posted', be aware that some accountancy packages have dividends in the P&L codes in the standard chart of accounts (eg. Sage) so they show retained profit on the P&L report rather than proper accounting profit for the year.
As far as statutory accounts are concerned, dividends do not appear anywhere in their own right in the primary statements - they are a deduction from retained profits within reserves on the balance sheet. They must be disclosed in the notes to the accounts and will also be included in the reserves note (which reconciles opening to closing reserves - in it's simplest form this will just be the P&L reserve, and show opening balance plus profit for the year less dividends = closing balance).0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 322 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 88 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 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