Annually, based on the results of financial activities, the joint-stock company is obliged to pay dividends by its shareholder. This operation is executed in accordance with the established rules and requires special attention from the accountant.
Instructions
Step 1
Prepare the annual financial statements of the enterprise based on the results of financial and economic activities. Approve it at the general meeting of founders, which, based on the balance sheet data, makes a decision on the payment of dividends.
Step 2
Determine the amount of net profit and the amount of retained earnings of previous years, which are indicated in the accounting report. Compare these values with the size of the authorized capital of the company. If the net assets are greater than this value, then the founders have the right to decide on the payment of dividends on shares. Otherwise, this operation may lead to bankruptcy.
Step 3
Make a decision at the general meeting of founders about how much of the net profit will go to dividend payments. Draw up the minutes of the meeting in which these points are noted. Issue an order for the company, according to which the accountant is obliged to accrue interest on shares to all members of the company.
Step 4
Calculate the amount of dividends payable to each shareholder. As a rule, this calculation is carried out in proportion to the total amount of shares. However, in some cases, an enterprise may decide on its method of determining dividends, which is mandatory prescribed in the company's charter.
Step 5
Register the payment of dividends in the accounting department. For this, the corresponding cash settlement orders or payment documents are created. In accounting, this operation is reflected in the debit of account 84 "Retained earnings". In correspondence with him there may be account 75.2 "Settlements with founders for the payment of income" or account 70 "Settlements with employees for wages". In the absence of profit, dividends are accrued only on preferred shares and are reflected in the debit of account 82 "Reserve Fund".
