Accounting entry

Save Share

This query is : Resolved

DIVYESH JAIN (Querist)

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)

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)

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)

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)

23 May 2014 Thanks for the reply

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now