For adding any dividend payment, we recommend you checking with your accountant first.
To add a dividend payment, first create 2 Chart of Accounts.
1. Dividend Payable as Current Liability
2. Dividend Paid as Equity
Example: A company declares $1.00 Dividend per share for 20,000 shares payable.
- When the company declares the dividend, create a Manual Journal Voucher.
Dividend Paid Debit $20,000.00
To Dividend Payable Account Credit $20,000.00
Please note Dividend Paid will appear under Equity in negative and Dividend Payable will appear under Current Liabilities in Balance Sheet.
- When Dividend is paid, create another Journal Voucher.
Dividend Payable Account Debit $20,000.00
To Bank Account Credit $20,000.00
After payment of the dividend, Dividend Payable account will zero out.
You can also create Record Expense for dividend payment by selecting COA Dividend Payable.