What entry is passed when we transfer proposed dividend in the p/l a/c and b/s as well as in the - Accountancy - Cash Flow Statement

Question

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?

Neha Chopra · Accepted Answer

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

Regards

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_)

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?