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How do i record a shareholder dividend payment in Quickbooks

I want to make a dividend payment to one of the company shareholders.  Where and how do I  add this into the appropriate place or places in Quickbooks Pro. Please provide as much detail as possible as to what screen and any other details I need to know.  I do not have an accounting background.

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Anonymous
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Although not required - I suggest you create an 'equity'...

Although not required - I suggest you create an 'equity' type account for Dividends Issued.

To pay a dividend in cash just write a cheque coded to this account.  To record a notional dividend not paid in cash make a Journal entry to DR Dividend Issued and CR DueToShareholder

At the beginning of the next fiscal year close the balance in the Dividend Issued account by journal entry: DR Retained Earnings - CR Dividends Issued.

Remember to do the Directors & Shareholders resolutions to authorize a dividend, and issue T5 slips in Feb next year.

RM6
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Hi Mike, This was super helpful. Thanks for taking the ti...

Hi Mike,
This was super helpful. Thanks for taking the time to answer. One question though is within the "Equity Type" accounts there doesn't seem to be an appropriate "Detail Type" for dividends. Which "Detail Type" would you suggest? (I can change the description after that.).
Anonymous
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Re: Hi Mike, This was super helpful. Thanks for taking the ti...

Use 'partner distribution' if you have it - thats the partnership equivalent of a dividend.

Anonymous
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Re: How do i record a shareholder dividend payment in Quickbooks