How do I record company dividends

Ensure you have the best process for company appropriations

First, make sure the chart of accounts is set up properly. 

The debit DR dividend account

• Must be Equity
• Must be mapped to EQU.RET.DIV

The credit CR account

• Should be liability
• Can be whatever you want, directors loan, dividend payables, you choose

Post the journal

30 June 20XX

DR - Dividends  - John Jones  - 50,000

CR - Directors Loan - John Jones - 50,000

Post the rollover journal

1 July 20XX

DR - Retained Earnings - 50,000

CR - Dividends - John Jones  - 50,000