Question: How to show dividen declared in balance sheet?
Answer:
If you want to show declared dividend in your company's balance sheet, you should do the following:
- Ensure to have account "Dividend Declared " with account type as "Equity".
- Ensure to have account "Dividend Payable to Mr. xxx" with account type as "Account Payable".
- Create journal entry to record the declared dividend as per the screenshot below:
- Then, if the dividend is paid, create cash payment, example shown in screenshot below:
- Then, you will get dividend declared under the Equity in your balance sheet
You can read more on balance sheet in TreezSoft by visiting these links:
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