Hi Rajinikanth!
I have few queries. To record a dividend paid, I first created a dividend account in chart of accounts by clicking current liability in account type and other current liability in detail type and named it as provision for dividend. Then I made a journal entry by debiting the retained earnings and crediting the provision for dividend. However in the balance sheet the current liability still showed as dividend payable. Also, my bank statement did not reconcile with QB.
I was advised to create a dividend paid account in chart of accounts. In accounts I typed owners equity in detail type dividend disbursed and named it dividend payable.
In the journal entry I was asked to debit the provision for dividend and credit the dividend payable,
Now, in the balance sheet the dividend payable is zero.
I also made an expense entry to reconcile the bank balance.
Hope it is correct.
