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Special dividend treatment

Atharv Sankliya (1323 Points)

14 January 2023

how special dividend is treated in investment account??

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12 Replies

Kriti (n/a) (400 Points)
Replied 14 January 2023

In an investment account, a special dividend is treated as a distribution of a company's retained earnings, which is separate from its regular dividends. Special dividends are typically one-time or infrequent payments that a company makes to its shareholders in addition to its regular dividends.

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 14 January 2023

Reduce the reserve and surplus.

Reserves and Surplus a/c Dr
To Special Dividend

Special Dividend a/c Dr
To Bank

9 Like

sabyasachi mukherjee (27113 Points)
Replied 14 January 2023

Special dividend is treated a distribution of a company .

Atharv Sankliya (1323 Points)
Replied 14 January 2023

Does it is credited to p&l a/c or investment account??

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 14 January 2023

Dividend from investments or

Dividend distribution to Share Holders ?

Are you taking about dividend income dividend expense ?

8 Like

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sabyasachi mukherjee (27113 Points)
Replied 15 January 2023

Disbursement of dividend is basically a outflow being paid after approval in annual general meeting .
In that case it can be termed as debited to pl account.