What entry will be made, if Dividend paid to Director of the company?

Question

Divyesh Patel · Answer

When the dividend is actually paid out in cash, the following entry is made:

Dr Dividends payable

Cr Cash

Mohamed Naga · Answer

DR. divedends payable

CR. cash

Aly Farouk Zamzam, (CMA) · Answer

Dr. Dividends payable

Cr, Cash or Bank

Utilisateur supprimé · Answer

It would be treated as a normal Dividend payment for the company point of view.

Ie: Dr. Dividend A.C

Cr. Cash Book

Muhammad Imran · Answer

Dividend payable(debit)

Cash(credit)

Utilisateur supprimé · Answer

Dividend Payable(Dr)

To Cash (Cr)