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liquidating dividend accounting entry-2

The solution assumes withholding tax payable is settled in the same accounting period.

The details of the final dividend of $2.5 per share declared after the end of the reporting period shall be disclosed in the notes to financial statements.

Trade creditors and other payables may be de-recognized in the following circumstances: The payment of liability results in the discharge of contractual obligation.

The liability must be reduced to the extent of the payment by cash or the transfer of other assets.

Dividend payments made last year amounted $1,500,000 in respect of dividends declared in 2011.

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