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Financial Statements from Incomplete Records

suman shil (33 Points)

07 July 2021

what is the Journal Entries and ledger posting for "Dividend on personal account deposited into bank ₹250"

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prasad Nilugal (3914 Points)
Replied 07 July 2021

Is it sole proprietorship ?.

suman shil (33 Points)
Replied 07 July 2021

Yes .It is retail trader

prasad Nilugal (3914 Points)
Replied 07 July 2021

If dividend not belong to business and same is of your personal in nature , then you have
credit to capital account . entry
Bank Account A/c Dr. 250/-
To proprietor capital A/c Cr 250/-
( being dividend received not belong to business)

Ledger posting
In Bank ledger - Debit side - To proprietor capital account A/c - 250/-
In proprietor capital account - credit side - By Bank A/!c Cr . 250-

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