date is approaching for submission of corporation tax, and thus, if our company has made profits in 2008, we can come on how to account for the payment of dividends.
This will be the theme of our entry today: "Count the payment of dividends."
At this time of year we have closed the accounts of the previous year, authenticated the books and what remains is to present the corporation tax and filing of accounts year, bringing the account 129. Profit for the year, we have the result of 2008, we are going to make the distribution of benefit.
divide our benefit from the following accounts:
- 112. Legal reserve (10% of the benefit, at least until the reserve reaches 20% of capital)
- 113. Voluntary Reserves (if we have created in society, the amount established by the board)
- 526. Active Dividend Payable (for the amount agreed to in meeting the payment of dividends)
These accounts will have their counterpart in the account 129. Profit for the period, the amount we had in the account at closing.
Once this seat, when the actual payment of the dividend, the seat to make would be:
526. Dividend payable to 57. Treasury
4751. Treasury withholdings payable.
retention account 4751, is 15% to be applied compulsorily to each shareholder and the company must enter this amount in property.
Each shareholder when it comes time to do their tax returns will integrate this retention in the furniture capital.
Gazelle From Circle, we hope that now you are wondering how to divide the profit, and This blog will serve to assist in understanding the distribution of profits from the accounting point of view.
So today, as always, we said goodbye until the next entry,
a greeting.
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