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Dividends

Normally a dividend is declared before it is paid. Therefore a Dividend Payable Account needs to be set up.  This is done by using the Chart of Account function under the Settings link. Use the plus icon at the top left hand side of the screen to add a new account.

Account Type....Current Liability
Account Name...Dividend Payable
Account Code...8XX

When the dividend is declared the following journal entry is made by using the Journals function under the Tasks link. A journal can be created by clicking on the plus icon.

The narrative, reference and description is important to fill in.
Account....Retained Earnings or Current Earnings
Type....Debit
Then fill in the amount.
This line reflects the dividend as an expense and therefore a reduction of the organisations retained/current earnings in the profit & loss account.

On the second line of the journal
Account....Dividend Payable
Type....Credit
Then fill in the amount.
This line reflects the dividend payable as a current liability in the organisations balance sheet.
It is important that the amount on the debit and credit entry above match as Yendo will not allow you to save the journal unless both entries balance.

When the dividend is paid by the organisation the accounting entry in Yendo is made by using the Bank Account Transactions under Tasks link.  Select the relevant bank account and use the plus icon to add another transaction.

Payment Type....Money Out
Account......Dividend Payable Account

It is important to fill in a narrative opposite the Reference and/or Notes Section as this is the narrative that appears on the Bank account of Yendo.

The Bank Accounts can then be reviewed on Yendo using the Bank Account Transactions under the Tasks link.  The appropriate bank account can be selected and reviewed.  Each transaction can be edited if required.