On 2021-12-05 03:39, Dr. David Kirkby wrote: > If a company can potentially pay out X pounds, but has not paid out > any at all, where would that be entered in GnuCash? I assume it's a > liability,
What do you mean by "can"? If the company is not legally obligated to pay a dividend, then I believe it is not a liability. It would be entered on the books only when the board votes to pay it. Even then, it might not be a liability. If it's paid shortly after the board's action (FSVO "shortly") then the company could well debit equity and credit cash/bank in a single transaction. On the other hand, if the dividend is announced in advance of payment, there would be one transaction at the time of announcement debiting equity and crediting a liability, then a second transaction at the time of payment debiting that liability and crediting cash/bank. I am not an accountant. -- Stan Brown Tehachapi, CA, USA https://BrownMath.com _______________________________________________ gnucash-user mailing list [email protected] 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.
