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Problem

Aarushi (CA) (47 Points)

05 October 2015

I am having some problem in consolidation relating to adjustment of dividend. I am studying from MP Vijay Kumar book. Can someone help?

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3293 Points)
Replied 05 October 2015

Account for the board of directors’ decision to approve a dividend for the period by adjusting retained earnings in the balance sheet. Decrease the retained earnings section and create a dividend payable account by debiting the retained earnings account and crediting the dividends payable account.