Good afternoon,
I'm just about to start my first year end for a small limited compnay and needed some assistance...
At present the nominal for dividends (3102) has a balance of the amount of dividends paid out to the directors for the finacial year. To reset this to zero (assuming I have to so that it only shows current year dividends paid) do i journal to P&L Account (3200)?
Many thanks
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Replies (8)
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I can't help with your account numbers but if the dividends are already in the dividends account why do you need a journal entry to move them anywhere else?
Probably because (if I recall) Sage is not clever enough to roll these accounts up at year end automatically so that reserves Cfwd are correct.
Thus, I think the OP is correct - assuming this adjustment is to be made after the accounts are finalised, rather than before.
yes, its Sage we are talking about... so are you saying I am correct to post to the P&L nominal? before i run the year end process? would have to date it at my year end no? Sorry if i seem a little confused.
Just assumed that the dividend code should be back to zero to start a new year, thus showing only dividends paid in current year always, is that wrong?
Yes of course it should be zero after the accounts have been prepared - just as all the income and expense accounts should be.
Your Sage data can show whatever you want, but the reserves brought forward in the accounts is going to include previous dividends paid so this will be a lot easier to see if you journal from 3102 to 3200 at year end. So the answer to your question is yes.
Doesn't it depend on where the accounts preparation software is expecting everything, but particularly in this case the dividends, to be.
I would have thought that the dividends account was the most likely place.
Yes after the accounts have been prepared the books will need to be closed off. If this is a question about closing off the books, and not about getting everything in the right place for the accounts preparation software to do its job, I apologise.