Paying Out a corporate dividend - how?

Hello all,

I have small small business corporation and want to pay out a dividend to shareholders.  How do I do that in Simply Accounting (my version is 2007)?

What I did was set up a group account 3525 in the Retained Earnings section, then issued a cheque to the shareholder as a vendor, thereby crediting the bank account and debiting the account 3525.  This results in the total retained earnings increasing by the amount of the dividend.  Is this correct???

Your help would be appreciated!

 

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  • FormerMember
    FormerMember

    Hi again:  The entry you made in order to pay out the dividend sounds to be correct.  Retained Earnings is a "Shareholder's Equity" account and is normally a credit.

    I believe that you will have to make out the T-slip for the dividend by hand.  I don't think there is any process in Simply that can produce it.  As for your other question regarding which kind of dividend, that would be something your Accountant would be able to advise you on.  There are always different tax issues, pro and con, regarding dividends and an Accountant would be your best advisor on something like that.    R Deering

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  • FormerMember
    FormerMember

    Hi again:  The entry you made in order to pay out the dividend sounds to be correct.  Retained Earnings is a "Shareholder's Equity" account and is normally a credit.

    I believe that you will have to make out the T-slip for the dividend by hand.  I don't think there is any process in Simply that can produce it.  As for your other question regarding which kind of dividend, that would be something your Accountant would be able to advise you on.  There are always different tax issues, pro and con, regarding dividends and an Accountant would be your best advisor on something like that.    R Deering

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