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?
Replies (2)
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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.
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.