Good day,
I was hoping someone could assist me.
I have a deemed dividend on the interest-free portion of shareholders loans.
We have declared the dividend and the dividends tax has been paid.
How should this be accounted for?
Since a dividend has not actually been declared, and is of course just deemed for tax purposes.
Obviously once paid, the entry would be:
Dr. SARS payable
Cr. Bank
But what would the initial entry be:
Dr.?
Cr. SARS Payable
Thank you.
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