Special dividend treatment

Kriti

n/a

500 Points Posted on 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

58280 Points Posted on 14 January 2023

Reduce the reserve and surplus.

Reserves and Surplus a/c Dr
To Special Dividend

Special Dividend a/c Dr
To Bank

sabyasachi mukherjee

Profession Business

28207 Points Posted on 14 January 2023

Special dividend is treated a distribution of a company .

Atharv Sankliya

1359 Points Posted on 14 January 2023

Does it is credited to p&l a/c or investment account??

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 14 January 2023

Dividend from investments or

Dividend distribution to Share Holders ?

Are you taking about dividend income dividend expense ?

sabyasachi mukherjee

Profession Business

28207 Points Posted on 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.