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In TB for the year ended 31st March 2008
Dividend received 210 Dividend paid 390.During the year, the company paid a final divided of 240,000 in respect of the year ended 31st March 2007; this was in addition to the interim dividend paid 1st September 2007 in respect of the year ended 31 March 2008.
The directors have proposed a final dividend of 270,000.?
How to adjust above in profit and loss statement and in statement of changes in equityDividend received is irrelevant to your question – I think. That will be shown as investment income in the I/S
Dividend PAID will be in the TB as a debit – presumably it’s the 390 in your question.
The proposed dividend of 270? Did the directors declare this BEFORE the year end? If not, it will be shown as a non-adjusting subsequent event.
If they DID declare BEFORE the year end, it needs to be accrued as a current liability. The debit will be in the Statement of changes in Equity as an appropriation of this year’s profits together with the 390 interim dividend already paid.
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