[GNC] Dividend payout entry

[davidcousens49 at gmail.com]

Foad,

You could likely pay the dividend to yourself out of Retained Earnings annotated
accordingly. Other than that local practice and any tax treatment may need to be
considered. E.g. If you are subject to company tax whether your dividend is paid
out after tax or before tax which could have imp[lications if your jurisdiction
has a tax imputation scheme. Best to consult a local accountant who is familiar
with your jurisdictional rules and requirements.

There will be a credit entry to the bank account for the dividend amount and a debit entry to Equity:Retained earnings for the same amount. 
If the dividend is more complex and was a distribution to other shareholders
then it might be more appropriate to create an Equity:Dividends Paid account in
which the dividend payments to the individual shareholders were recorded and
first transfer the total amount for the dividends into that account and record
the individual payments to shareholders against this account against it.

David Cousens


On Mon, 2021-10-11 at 12:53 -0700, Foad Kasiri wrote:
> Hi:
> I live in Canada and work as a consultant under my own one person consultant
> incorporated company . I was wondering how to enter the dividend payout to
> myself in Gnucash? I have Equity folder with two subfolders: Opening Balance
> and Retained Earning. I did the following but I think it is more entry needed.
> Thanks.
> 
> Best regards,
> 
> Foad
> 
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