Answer to Question #150088 in Accounting for Akshita

Question #150088
You purchased 10 shares of l&t company last year. On 5march 2019,the company has declared a dividend rs 50per share. The income is earned but not yet collected in your account during this financial year.
1
Expert's answer
2020-12-11T11:26:36-0500

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"

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