Hi Tutor,
I watched the dividends lecture and it was so helpful.
I have a question though - In BPP book in the double entry section it says
dr. re
cr.cash/dividend payable[if declared]
But in the lecture it says if its declared it doesnt have to be accounted anywhere
Please can you assist me with this confusion
Thank you
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Dividends
1y ago#1I think maybe you misheard the lecture (but I must check to make sure that I did not mis-speak!)
If it is proposed then it doesnt have to be accounted anywhere, but if it has been declared then it is accounted for (as you quote from your BPP book).
I am not sure may be I misheard - But is proposed dividend and declared dividend same ?
1y ago#3No. A proposed dividend is a 'suggested' dividend and shareholders vote on whether or not it is OK.
A declared dividend is a 'certain' dividend.
So can i Say that if its proposed regardless of before or after year end - it wont be recognised in FS
If its declared before year end Cr.Payable ?
1y ago#5That is correct :-)
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