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Hello Community Users, We just wanted to add to this thread. There are a number of ways to record dividends, depending on business type etc. We recommend speaking with an account on how best to record them.
If you're not using Quickbooks for payroll then your salary is recorded as follows: -
On the assumption you're just drawing an amount of cash for yourself as required
Debit Director's remuneration
Credit Director's loan (hopefully a liabiity)
Credit PAYE
I normally det up dividends as an other expense
Debit dividends
Credit director's loan
Amounts paid to you are then allocated to the director's loan.
Hello Community Users, We just wanted to add to this thread. There are a number of ways to record dividends, depending on business type etc. We recommend speaking with an account on how best to record them.
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