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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 youI 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 ?
No. 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 ?
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