October 30, 2016 admin

Dividends Payable

Liabilities and Net Worth

DIVIDENDS PAYABLE LIABILITY ACCOUNT
2110

ACCOUNT EXPLANATION
Dividends declared by the board of directors and unpaid at month end.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Declaration of cash dividend G
    Dividends Declared 2820
      Dividends Payable 2110
             
  Payment of cash dividend to stockholders CD
    Dividends Payable 2110
      Cash in Bank—General 1001
COMMENTS
  • Dividend declarations should be supported by the minutes of the board of directors.