Thank you David for your helpful information. The Canadian Corporate Tax (T2) does no longer consider dividend payout tax deductable. As such, I would like to know if the dividend entry that I have done in the retaining earning is correct and enough or need I do more? Thanks.
Foad > On Oct 11, 2021, at 9:46 PM, davidcousen...@gmail.com wrote: > > Foad, > > You could likely pay the dividend to yourself out of Retained Earnings > annotated > accordingly. Other than that local practice and any tax treatment may need to > be > considered. E.g. If you are subject to company tax whether your dividend is > paid > out after tax or before tax which could have imp[lications if your > jurisdiction > has a tax imputation scheme. Best to consult a local accountant who is > familiar > with your jurisdictional rules and requirements. > > There will be a credit entry to the bank account for the dividend amount and > a debit entry to Equity:Retained earnings for the same amount. > If the dividend is more complex and was a distribution to other shareholders > then it might be more appropriate to create an Equity:Dividends Paid account > in > which the dividend payments to the individual shareholders were recorded and > first transfer the total amount for the dividends into that account and record > the individual payments to shareholders against this account against it. > > David Cousens > > > On Mon, 2021-10-11 at 12:53 -0700, Foad Kasiri wrote: >> Hi: >> I live in Canada and work as a consultant under my own one person consultant >> incorporated company . I was wondering how to enter the dividend payout to >> myself in Gnucash? I have Equity folder with two subfolders: Opening Balance >> and Retained Earning. I did the following but I think it is more entry >> needed. >> Thanks. >> >> Best regards, >> >> Foad >> >> _______________________________________________ >> gnucash-user mailing list >> gnucash-user@gnucash.org >> To update your subscription preferences or to unsubscribe: >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> If you are using Nabble or Gmane, please see >> https://wiki.gnucash.org/wiki/Mailing_Lists for more information. >> ----- >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
