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How do I record paying a dividend to shareholders

I have done:

Create New -> Cheque -> paid to the Dividends Payable (Current Liabilities) account. 

This now shows on the balance sheet as a current liability. How do I zero this once the dividend has actually been physically paid?

3 REPLIES 3
ProAdvisor

Use the write checks screen & use Dividends Payable as th...

Use the write checks screen & use Dividends Payable as the expense account at the bottom of the check.

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I tried this, and it increases the value of the Dividends...

I tried this, and it increases the value of the Dividends Payable account, rather that reducing it.
Super Contributor **

I always use @raywhite28 's technique, but use Retained E...

I always use @raywhite28 's technique, but use Retained Earnings to debit the payment to. This way, the payment does not affect the Profit & Loss account - dividends are paid out of taxed income (in the company) and the retained earnings are shown accurately in the balance sheet.