[Debit] Dividends [Credit] Cash / bank
Retained Earnings
Stock dividends - These are dividends paid in the form of additional stock of the issuing company to shareholders of record in proportion to their current holdings. A stock dividend does not increase the wealth of the recipient nor does it reduce the net assets of the firm. It is a permanent capitalization of retained earnings to contributed capital. As there is no change in the amount of the stock that;s why stock dividend does not require any entry to be recorded rather it is shown as note.
There is no journal entry for bill received rather journal entry is made when bill is actually paid or when utility is actually utilized.
There is no journal entry for loan repayment schedule rather journal entry is made when actual payment is done or installment is paid.
[Debit] Dividends [Credit] Cash / bank
Dividends are paid to shareholders by three types. They can either be paid annually, or biannually, or on quarterly basis.
Dividends
By dividends paid to the shareholders of the company.
Retained Earnings
They are called dividends.
Yes. companies pay out dividends to its share holders from the profit they make out of their business. The more the profit the company makes the greater would be the dividends paid out to the shareholders.
an order of payment (such as a check payable to a shareholder) in which a dividend is paid
Stock dividends - These are dividends paid in the form of additional stock of the issuing company to shareholders of record in proportion to their current holdings. A stock dividend does not increase the wealth of the recipient nor does it reduce the net assets of the firm. It is a permanent capitalization of retained earnings to contributed capital. As there is no change in the amount of the stock that;s why stock dividend does not require any entry to be recorded rather it is shown as note.
Those distributed profits are called dividends, because the profit is divided among the various shareholders.
There is no journal entry for bill received rather journal entry is made when bill is actually paid or when utility is actually utilized.
[Debit] Tax paid [Credit] Cash / bank