I declared dividends in the year 2017/18 but did not pay them until the following financial year.
For the year end I did a journal so they would show up correctly although I am not sure I have done this right.
The journal debits account 3102 “dividends paid” by £2000 and credits 1201 “directors loan account” by £2000
then when it is paid I tag the payment to 1201 to reduce its balance
I am quite new to this and keep getting in a muddle which way round things should be
Thanks for your help in advance.