Accounting for Withdrawal of Retained Profit as Dividend

Accounting
1

Hello,

I had a small amount of retained earnings from the 16/17 financial year, that I’d now like to withdraw as a dividend this financial year. How do I account in Quickfile for this withdrawal?

Thanks!

2

You can journal as
Dr Dividends
Cr Bank or Director loan account

Or tag bank payment as dividends

3

dividends
dividends1035×425 14.2 KB

The problem is, say I have £4500 worth of dividends still to take for this 17/18 financial year, but I want to withdraw £5792.32 (which includes the £1292.32 of retained profit from 16/17), Quickfile says I’ve taken £1292.32 more dividends than is allowed. I know how to account for this years, but not for last years? Hope that makes sense?

4

Has the year end routine been run for last year to get balance in Retained earnings?

5

No, this has not been done yet.

Would you be so kind as to document the steps to do this? I’m eager to learn! :slight_smile:

6

There are steps available on QF knowledge base for year end BUT if last year accounts are not finalised yet its best not to run it now, you can simple see this year balance sheet footing “capital and reserve” for over all profit avaiable for dividends and declared dividends based on that.