Dividends account set up in Balance Sheet

[VLW]

Hi All

What categories should be used in this account set up?

Thanks in advance.

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[Andromeda]

It is an equity account, or else just a reduction in retained earnings

[VLW]

Thank you, is the set up then B15-Retained Income amd the Report Writer Category Dividends paid? Confused with how to set it up as it says Retained Income already used under 5200

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[VLW]

How to reflect it properly on the balance sheet report

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[Andromeda]

Besides your reporting requirements, the entries for dividends usually are:
Debit Retained Income (Total Dividend)
Credit SARS (Withheld taxes)
Credit Shareholders For Dividend (Dividend Less Taxes)

Then when it is paid
Credit Bank
Debit SARS
Debit Shareholders For Dividend

The dividends will be reflected in the Changes In Equity statement, not the Balance Sheet, but your reporting requirements may be different.

[Krono9]

In pastel you setup the debit account "Dividends Declared" as an expense type account, usually 4999 or something. There is a financial category IS-Dividends. By doing it like this you ensure at yearend rollover it's allocated and reduces the retained income balance. On the balance sheet you have two liabilities of Dividends Payable and Withholding tax payable.

[VLW]

Thanks everyone, all sorted.

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