Paying dividends from Trading company to Holding company
holiday
Registered Posts: 3
The trading company is owned 100% by the holding company. A dividend is to be paid from the trading co up to the holding co then paid to Shareholder. In the trading co I think the entries are dr dividends issued (equity) cr dividends payable (liability) or would this be coded to the Holdings co account (liability). when payment made cr bank dr dividends payable (liability) or Holdings co account ( liability). In the Holdings co cr Dividends rec'd (equity) dr trading co (liability). when money received dr bank cr trading co (liability).
Paying Shareholder from Holdings co: dr dividends due (equity) cr shareholder a/c (liability) payment: cr bank dr shareholder a/c (liability) . Can anyone confirm the above entries are correct or otherwise thanks
Paying Shareholder from Holdings co: dr dividends due (equity) cr shareholder a/c (liability) payment: cr bank dr shareholder a/c (liability) . Can anyone confirm the above entries are correct or otherwise thanks
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