First, make sure the chart of accounts is set up properly.
The debit DR dividend account
- Must be Equity
- Must be mapped to EQU.RET.DIV
The credit CR account
- Should be liability
- Can be whatever you want, directors loan, dividend payables, you choose
Post the journal
30 June 20XX
DR - Dividends - John Jones - 50,000
CR - Directors Loan - John Jones - 50,000
Post the rollover journal
1 July 20XX
DR - Retained Earnings - 50,000
CR - Dividends - John Jones - 50,000
