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Dear OpenTuition Team,
I was wondering why there isn’t an entry after declaring a dividend:
Debit Retained earnings and Credit Dividend Payables
After paying the dividend:
Debit Dividend Payables and Credit Cash
Is that just not the way the UK record dividends or why are declared dividends not recorded?
Best
SerdarDividends have to be voted on before they become final. So simply declaring a dividend is not recorded – it is only when the dividend is actually paid that an entry is made.
I do explain this in my free lectures 🙂
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