If a company declares a dividend of £100 ( £20 to each of 5 shareholders ) and one shareholder waives his dividend of £20. Should the Profit and Loss accounts show dividends of £80 only? If in error £100 is shown as dividends how can this be rectified?
I am slightly confused. Can you help please.
Mah
Replies (2)
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Depends
When was the waiver put in place? If after the dividend was declared, the waivre has no effect and the £100 is correct. If the waiver is valid, simply correct the accounts to reduce dividends paid to £80.