What entry is passed when we transfer proposed dividend in the p/l a/c and b/s as well as in the case of write off?

Dear Student

Journal entry for Declaration and payment of dividend is 
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)      
  Proposed Dividend A/c Dr.  xxx   
    To Bank A/c      xxx 
  (Being Dividend paid_)      

And the profit and loss account shall be transferred to Reserves and surplus i.e written off there.


  • 0
What are you looking for?