{"id":39493,"date":"2022-06-01T07:20:44","date_gmt":"2022-06-01T04:20:44","guid":{"rendered":"https:\/\/www.simplbooks.fi\/?p=39493"},"modified":"2025-12-10T15:29:03","modified_gmt":"2025-12-10T13:29:03","slug":"dividends-in-accounting-how-to-record-income-and-distributions","status":"publish","type":"post","link":"https:\/\/www.simplbooks.fi\/en\/blog\/dividends-in-accounting-how-to-record-income-and-distributions\/","title":{"rendered":"Dividends in accounting \u2013 how to record income and distributions?"},"content":{"rendered":"\r\n\r\n\r\n

Dividends in accounting are recorded using the same principles as any other accounting entry. If a company receives dividends, they are considered income, and income increases on the credit<\/a> side. If a company distributes dividends, they can be regarded as expenses, and expenses belong on the debit side.<\/p>\r\n

In accounting, dividends are recorded in the financial year during which the underlying financial statements are approved and the decision to distribute dividends is made. In 2022, for example, dividends are distributed based on the 2021 financial statements, and once the general meeting has decided on the distribution, the dividends can be recorded for the year 2022.<\/p>\r\n

\u00a0<\/p>\r\n

\"\"<\/a><\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n

\r\n
\r\n
\u00a0<\/div>\r\n

Payment of dividends<\/span><\/h2>\r\n
\u00a0<\/div>\r\nIt makes no difference whether dividends are paid to the entrepreneur personally or to someone else. In accounting, dividends behave exactly the same in both cases.<\/div>\r\n<\/div>\r\n
\u00a0<\/div>\r\n
\r\n\r\n\r\n\r\n
\r\n
\r\n
\u00a0<\/div>\r\n
EXAMPLE<\/span><\/strong><\/div>\r\n

The company pays the shareholder dividends of \u20ac3,000, from which \u20ac225 is withheld as tax. After the withholding, \u20ac2,775 is transferred to the shareholder\u2019s bank account.<\/div>\r\n
\u00a0<\/div>\r\n
Dividend distribution:<\/strong><\/div>\r\n