Question

Recieved dividend amounted rs.4000....journalise it

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Cash A/c - real A/c , where money comes into the company therefore its debited

Dividend Received A/c - Nominal A/c , where dividend is the income to the company therefore its credited

# i assume dividend received through cash but practically it will directly go to bank . so its can be cash or bank  

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Journal entry

Cash A/c  Dr           4000

         To Dividend Received  A/c   4000

(being Received dividend )

Answer 2

Bank A/C. Dr. Rs.4000

To Dividend A/C. Rs.4000

(Being dividend received)