20 February 2013
Dividend reinvestment plan is something where dividends are invested into additional shares of the company directly.
1.Retained earning To dividend payable. ( To record the declaration of dividend) 2. Receivable To share capital ( To reflect the allotment of ordinary shares for which issue price hasn’t been settled) 3. Dividend payable To dividend receivable (to record the app of dividend payable against the amount payable for shares)
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