[GNC] Where would enter revenue that could be paid to shareholders?

[Stan Brown]

On 2021-12-05 03:39, Dr. David Kirkby wrote:
> If a company can potentially pay out X pounds, but has not paid out
> any at all, where would that be entered in GnuCash? I assume it's a
> liability,

What do you mean by "can"? If the company is not legally obligated to
pay a dividend, then I believe it is not a liability. It would be
entered on the books only when the board votes to pay it.

Even then, it might not be a liability. If it's paid shortly after the
board's action (FSVO "shortly") then the company could well debit equity
and credit cash/bank in a single transaction. On the other hand, if the
dividend is announced in advance of payment, there would be one
transaction at the time of announcement debiting equity and crediting a
liability, then a second transaction at the time of payment debiting
that liability and crediting cash/bank.

I am not an accountant.

-- 
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com