Special dividend treatment
Atharv Sankliya (1359 Points)
14 January 2023
how special dividend is treated in investment account??
12 Replies
Kriti
(n/a)
(400 Points)
Replied 14 January 2023
In an investment account, a special dividend is treated as a distribution of a company's retained earnings, which is separate from its regular dividends. Special dividends are typically one-time or infrequent payments that a company makes to its shareholders in addition to its regular dividends.
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 14 January 2023
Reduce the reserve and surplus.
Reserves and Surplus a/c Dr
To Special Dividend
Special Dividend a/c Dr
To Bank
Reserves and Surplus a/c Dr
To Special Dividend
Special Dividend a/c Dr
To Bank
sabyasachi mukherjee
(27858 Points)
Replied 14 January 2023
Special dividend is treated a distribution of a company .
Atharv Sankliya
(1359 Points)
Replied 14 January 2023
Does it is credited to p&l a/c or investment account??
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 14 January 2023
Dividend from investments or
Dividend distribution to Share Holders ?
Are you taking about dividend income dividend expense ?
Dividend distribution to Share Holders ?
Are you taking about dividend income dividend expense ?
sabyasachi mukherjee
(27858 Points)
Replied 15 January 2023
Disbursement of dividend is basically a outflow being paid after approval in annual general meeting .
In that case it can be termed as debited to pl account.
In that case it can be termed as debited to pl account.
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 15 January 2023
It looks like dividend income from investments and not dividend expense .
It will be credited to profit and loss account
It will be credited to profit and loss account
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 16 January 2023
Being an investor, dividend is an income and should be credited to profit and loss account
sabyasachi mukherjee
(27858 Points)
Replied 16 January 2023
That sounds better now so the querist must put forth his question correctly.
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 18 January 2023
Bank a/c Dr
To Special Dividend a/c
To Special Dividend a/c
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