If the company paid a dividend to a director, how do I properly account for that?

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@MelanieSchroederCPA wrote:

Hi Jille! 8 ball pool

 

It depends how the dividend was paid to the director.  The most common scenario, is a cash paid dividend.  In this case, you would of course record an expense, or cheque and use a Category you set up called Dividends paid.  This account is an Equity type account.  In the equity type accounts, you should find a dividends paid account type.

 

I hope this helps!

Melanie

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Thanks for the thorough explanations, I appreciate it.