Answer to Question #148557 in Accounting for Harish

Question

you purchased 10 shares of L&T company last year.on 5th march 2019,the company has declared a devidend Rs 50 Per share.The income is earned but not yet collected in your account during this financial year......5 Mark value ......assignment

Answer 1

The two accounts involved in transaction one is Dividend Income (as dividend is declared), the other one is Dividend Receivable (as it is not yet collected in the account)

Impact on the Income statement - Increase in Income - as Dividend Income --- $\$500$

Impact on the Balance Sheet - Increase in Current Assets - as Dividend Receivable --- $\$500$