Proposed dividend is shown as current liabilities in balance sheet but why do we show in p/l a/c?
Dear Student
The journal entry for the declaration of proposed dividend is passed through profit and loss account only, therefore it is shown in profit and loss account.
Journal entry:
Regards
The journal entry for the declaration of proposed dividend is passed through profit and loss account only, therefore it is shown in profit and loss account.
Journal entry:
Journal in the books | ||||
Date | Particulars | Debit | Credit | |
Profit and Loss A/c | Dr. | xxx | ||
To Proposed Dividend A/c | xxxx | |||
(Being dividend proposed shall be paid on approval form shareholders) |
Regards