I find that two director/shareholders of my Ltd client have sold their shares to the other two. Dividends were voted before the sale but are not yet paid because of cashflow.
Is this acceptable, and do I show the debt as 'other creditors' in the accounts. Is any accounts note required, given that these are not now connected parties?
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If they were shareholders when the dividend became due and payable (consider the date and wording of the resolutions) then yes dividend is due to them and should be provided for.
You have to disclose the amount of dividends that the company "is liable to pay at the balance sheet date" - I think that means that unpaid dividends need to be disclosed (as a footnote to the Reserves Note). I think that as these two were related parties when the transaction took place, it should still be reported as a RPT.