PAT as dividends

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September 8, 2018 at 2:55 pm #472335
maxpopper
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Hi

If its written that company has policy of paying 40% of PAT as dividends.

So here 40% of PAT will be paid as dividends (i.e cash will be credited)
60% of PAT will be added as retained earnings in reserves (i.e Reserves will be credited) Right?
But what would be debited here?
September 8, 2018 at 3:51 pm #472353
John Moffat
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Debits and credits are of no relevance whatsoever for Paper FM. If you want to know them then you need to watch my Paper F3 lectures (where it is relevant).
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