[GNC-dev] [GNC] Recording dividend payoffs

[Phil Diacono]

I agree with Justin. Other than "this is how it works" or "here's a
workaround", 
I don't believe I've seen an argument challenging his proposal. Can I
encourage you to consider this approach for a future release?

Am I correct in thinking that the other category that drains retained
earnings 
is capital expenditure? 

Phil Diacono

- 
> Dividends are a decrease in equity and can't be recorded in an 'Expense'
> type account (although that's the current workaround and technically
> wrong). Therefore what I suggest is to create a dividend account type
> under
> equity (equity currently has only 1 type of account) which can be used to
> record dividend declarations. The value of this account can then be
> adjusted from total income. This will give us the real 'Retained
> Earnings'.
> 
> Note that: The corresponding journal entry for recording in dividend
> declaration account is 'dividend payable' (which is a liability account
> created by user). To record a dividend paid, a second record is created in
> 'dividend payable' against the journal 'current account' or 'cash
> account'.
> 
> Regards,
> Justin Mathew




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