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Special dividend treatment

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how special dividend is treated in investment account??
Replies (12)

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.

Reduce the reserve and surplus.


Reserves and Surplus a/c Dr
To Special Dividend




Special Dividend a/c Dr
To Bank
Special dividend is treated a distribution of a company .
Does it is credited to p&l a/c or investment account??
Dividend from investments or

Dividend distribution to Share Holders ?

Are you taking about dividend income dividend expense ?
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.
It looks like dividend income from investments and not dividend expense .

It will be credited to profit and loss account
Wrong in whose books????
Investors books
Being an investor, dividend is an income and should be credited to profit and loss account
That sounds better now so the querist must put forth his question correctly.
Bank a/c Dr
To Special Dividend a/c


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