Tally

In following transaction a company made net profit of 10,000 where Mr.A, Mr.B & Mr.C had the share ownership of 50%, 25% & 25% recpectively

Accounting voucher I’ve passed in Tally:
No. 1 (Journal Entry)
P/L A/c                            Dr    10,000
Retained Earnings      Cr                10,000

            

No. 2 (Journal Entry)
Retained Earnings      Dr      1,000

Dividend                         Cr                1,000

 

No.3 (Journal Entry)

Dividend                         Dr     1,000

Mr. A                                Cr                500

Mr. B                                Cr               250

Mr. C                                Cr.              250

 

No.4 (Payment Voucher)

Bank A/c                        Cr    1,000

Mr.A                                 Dr              500
Mr.B                                Dr              250
Mr.C                                Dr              250

 

Note: Mr.A. Mr.B & Mr.C ledger are created under current liability group while Rerained Earnings and Dividend ledger is created under Capital account group and Bank A/c ledger is created under current asset Group.

So the question is whether the Accounting Vouchers passed by me is right or wrong?

Replies (2)

Mr Mohan

Retined Earnig is the part of reserve & surplus and divined payble to share holder is libility so you shuld open these a/c under reseve & surplus and current liablities

There is only three shre holder so you may payment of divend to share holder to dirctly Dr to dividend payable a/c without opening the share holder a/c in the books

The Above amount Rs. 10,000 is after paying any tax or before the tax.

Also which Accounting Standards is applicable to various resrve's

 

Thanks

 

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