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Post Info TOPIC: where do i post a dividend payt
meadow


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where do i post a dividend payt
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Hello

 

One of my client has paid himself a dividend. It is all ok as there is plenty of profit in the business, but I am not sure where I put the payment....Profit and loss account or Balance sheet

 

thanks

 

Caroline



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Thanks

 

Callie

:-)
Leger


Master Book-keeper

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Hi Caroline 

It goes on the balance sheet. VT calls it equity dividends so other software will be similar I suspect.  Ensure the Director has issued a dividend voucher to cover it.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
meadow


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Thanks JOhn


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Thanks

 

Callie

:-)
Cheshire


Master Book-keeper

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Hi caroline
Just to set the cat amongst the pigeons.......

'plenty of profit in the business'

Do you mean its dividend declared prior year, accounted for but wasnt drawn until this financial year? Or its in this financial year, is an interim and enough profit AFTER CT calc to pay out? Has there been other withdrawals via the DLA as well as this one that are included in the plenty of profit calc?

Just a few thoughts!

If unsure I would be tempted to stick in the DLA and let the Accountant sort it at year end.

(As well as the divi voucher, ensure appropriate board resolutions and careful on the dating of both!)

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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