Dividend Transfer to Holding Account

Where would you find dividends on the Financial Accounts when transferring to a Holding account

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In the last financial year, I transferred dividends from Company Ltd to our Company Holdings Ltd account.

Our accountant has assigned these dividends under Debtors for "Current Assets" for Company Ltd. Is this correct?

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By paul.benny
22nd Dec 2021 15:50

It sounds like your accountant has treated it as a loan from Company to Holdings., perhaps because s/he is unaware that the payment was a dividend.

If you are a director, you, not the accountant, are responsible for the financial statements. So if you don't understand what your accountant has done, ask.

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By paulwakefield1
23rd Dec 2021 08:49

Paul's reply is almost cerainly the correct explanation but, as a longshot, maybe the dividend was illegal (insufficient resreves) and it is deemed repayable by the Holding company.

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