Accounting entry

This query is : Resolved

DIVYESH JAIN (Querist)
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23 May 2014 Dear Sir,

Can anyone help me on what will be the accounting treatment of Dividend on right shares and Dividend on Bonus shares.

Rupesh Jain

Rupesh Jain (Expert)
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23 May 2014 you can book entry as dividend of shares .

shares are shares company not taking diff. ledger for right and bonus shares.

accumulated profit a/c

to dividend payable to shareholder a/c
to dividend tax payable a/c

divided payable to shareholder a/c
dividend tax payable a/c
to bank a/c

DIVYESH JAIN

DIVYESH JAIN (Querist)
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23 May 2014 Dear Sir,

Thanks for the reply, but I wanted to know the accounting effect in the books of recipient of dividend, not the payer.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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23 May 2014 There is no difference in getting dividend from Bonus Shares/ Right shares.

Theentry will be:

Bank A/c ---------------------------Dr
TDS Receivable A/c)If applicable)---Dr

To. Dividend Income

DIVYESH JAIN

DIVYESH JAIN (Querist)
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23 May 2014 Thanks for the reply