Question:Where does the shareholders dividend payment go under (Trading, profit and loss account or balance s
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Q: Where does the shareholders dividend payment go under (Trading, profit and loss account or balance sheet)?
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Answers to Common Questions
Where does the shareholders dividend payment go under (Trading, p...?
I think it must be balance sheet, as you pay a dividend out of shareholders funds after P/L is calculated and taxed. So it should be CR Nostro (cash account) and DR Shareholders' Funds (it reduces the liability to shareholders)
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where does the shareholders dividend payment go under (Trading, profit and loss account or balance sheet)?
Q: Where does the shareholders dividend payment go under (Trading, profit and loss account or balance sheet). And which heading does it go under, for example if profit and loss account (Less cost of sales or Less Expenses) or if balance sheet (Current Liabilities) thanks in advance
A: I think it must be balance sheet, as you pay a dividend out of shareholders funds after P/L is calculated and taxed.So it should be CR Nostro (cash account) and DR Shareholders' Funds (it reduces the liability to shareholders)
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