Accounting entries of company dividends
Disposal of purchased assets:
Borrow: transactional financial assets
Loans: bank deposits
From maturity to redemption, make accounting entries according to profits:
Positive income:
Debit: bank deposit
Loan: investment income
Transactional financial assets
Accounting entries of dividends from entrusted financial management of the company
When withdrawing money from the company account:
Debit: Cash on hand.
Loans: bank deposits
Accounting treatment of investment dividends received
When the company pays dividends:
Debit: Dividends receivable
Loan: investment income
When the company receives the dividend:
Debit: bank deposit
Credit: Dividends receivable
Dividends receivable belong to the asset category. Dividends receivable in the asset account refer to cash dividends that an enterprise should receive due to equity investment and profits receivable from other units, including cash dividends that have been announced but have not yet been received and cash dividends or profits that an enterprise should share in foreign investment, but excluding stock dividends receivable.
What are transactional financial assets?
Financial assets that meet one of the following conditions shall be classified as transactional financial assets:
1. The main purpose of obtaining financial assets is to sell or repurchase or redeem them in the near future.
2. Being a part of the identifiable financial instrument portfolio under centralized management, there is objective evidence that the enterprise recently managed the portfolio through short-term profit.
3. It belongs to financial derivatives. However, derivatives designated as effective hedging instruments by enterprises belong to financial guarantee contract derivatives, except those linked to equity instrument investments that are not quoted in an active market and whose fair value cannot be reliably measured and must be settled through delivery of equity instruments.
Common tradable financial assets are: stocks, bonds, funds, etc.