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Dividends - Why are declared dividends not recorded?

SSerdar3y ago
Dear OpenTuition Team, I was wondering why there isn't an entry after declaring a dividend: Debit Retained earnings and Credit Dividend Payables After paying the dividend: Debit Dividend Payables and Credit Cash Is that just not the way the UK record dividends or why are declared dividends not recorded? Best Serdar
John MoffatJohn MoffatTutor3y ago#1
Dividends have to be voted on before they become final. So simply declaring a dividend is not recorded - it is only when the dividend is actually paid that an entry is made. I do explain this in my free lectures :-)
SSerdar3y ago#2
Got it. Thanks John.
John MoffatJohn MoffatTutor3y ago#3
You are welcome. :-)
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