DividendForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › DividendThis topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total) AuthorPosts July 25, 2019 at 2:38 pm #524885 ikmughal28ParticipantTopics: 66Replies: 63☆☆Hi I have a general question that if profit is not equal to cash then why cash dividend is paid out of profit/retained earnings? shouldn’t it be paid from cash directly? July 25, 2019 at 5:52 pm #524904 John MoffatKeymasterTopics: 56Replies: 53858☆☆☆☆☆You should remember from Paper FA (was F3) that the double entry when a dividend is paid is Credit Cash and Debit Retained earnings.They need to have made profits (and therefore have retained earnings) in order to pay dividends. July 25, 2019 at 9:42 pm #524922 ikmughal28ParticipantTopics: 66Replies: 63☆☆Cleared Thanks July 26, 2019 at 9:48 am #524948 John MoffatKeymasterTopics: 56Replies: 53858☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)The topic ‘Dividend’ is closed to new replies.