Question

Received dividend on investment in journal entries

Answer 1

Investment a/c. Dr.

To divided a/c

( Being the dividend receive

on investment )

Answer 2

Recognition of Dividends Received

Investments that amount to less than 20% of the outstanding common stock of the investee are accounted for using the fair value method (also called cost method). Dividends declared by the investee are recognized in the income statement in the period in which they are declared.