How proposed dividend ac is made when dividend made is given in the adjustment even if the amount of past and current year is given in the balance sheet? Plz explain with the journal entry

Dear Student

If Dividend made is given then it means that dividend income received, therefore it won't affect proposed dividend account.


This dividend made would be shown as income in investing activity and shall be shown as deduction from net profit before tax and extraordinary item.

Now with regards to proposed dividend it would be prepared in the same way as prepared i.e :
Opening balance of proposed dividend is paid from bank and closing balance of proposed dividend is charged from profit and loss account.

Example

Suppose in Balance sheet Proposed dividend is shown as :

Particulars	Current Year	Last Year
Proposed Dividend	100,000	50,000

  and  in  adjustment, it is shown as :
1. Dividend made (Received) during the current year is Rs 10,000/-

Therefore journal entry that would have been passed considering the above facts in mind are :

Journal in the books Current Year
Date	Particulars		Debit	Credit
	Proposed Dividend A/c	Dr.	50,000
	To Bank A/c			50,000
	(Being Dividend declared for last year paid in current year)
	Profit and Loss A/c	Dr.	100,000
	To Proposed Dividend A/c			100,000
	(Being dividend proposed for Current Year, it shall be paid on approval form shareholders)
	Entry for Dividend appearing in adjustment i.e Dividend made(Received))
	Bank A/c	Dr.	10,000
	To Dividend Income A/c			10,000
	(Being dividend received)
	Dividend Income A/c	Dr.	10,000
	To Profit and Loss A/c			10,000
	(Being income credited to profit and loss account)

Regards