Dividend from associate

Hi Sir,

I needed further assistance in understanding the double entry, regarding above.

So my understanding is when a associate makes a profit for year say for £5m (our share).

Double entry would be DR associate 5m CR P&L income from associate.

Secondly, if a associate declared a dividend of say £2m; from my understanding we DR P&L and CR associate £2m.

The finally when we receive the dividend payment, form my understanding ti should be DR bank £2m and Cr associate £2m.

But if i follow this logic i would have credited Associate twice with £2m, which doesn’t make sense to me.

Can you please confirm the double entry.

Thank you.