Recording money received, including dividend receipts, is an important part of managing your finances. Dividend receipts are payments to shareholders from a company's profits. Shareholders have purchased stock in a company. Most dividends are paid quarterly, but depending on the company, payments may be more or less frequent.
Go to the General Journal.
Debit “Cash” for the amount of the dividend receipts. Cash is an asset account and is increased with a debit. Debits are always on the left side of the balance sheet.
Credit “Dividend Revenue” for the amount of the dividend receipts. Dividend Revenue is a revenue account and is increased with a credit. Credits are always on the right side of the balance sheet.
Date dividend receipts the day they are received.
Neglecting to record dividend receipts could cause your books to be out of balance at the end of the quarter or fiscal year.
- Cliffnotes.com: Accounting Principles II -- Accounting for Equity Securities
- U.S. Securities and Exchange Commission. “Ex-Dividend Dates: When Are You Entitled to Stock and Cash Dividends.” Accessed August 13, 2020.
- Unilever. “Dividend history.” Accessed August 13, 2020.
- Walmart. “Walmart Raises Annual Dividend to $2.16 per Share, Marking 47th Consecutive Year of Dividend Increases.” Accessed August 13, 2020.
- Microsoft. “Microsoft Outlines Quarterly Dividend, Four-Year Stock Buyback Plan, And Special Dividend to Shareholders.” Accessed August 13, 2020.
- Energy Infrastructure Council. “AN INTRODUCTION: MASTER LIMITED PARTNERSHIPS,” Page 7. Accessed August 13, 2020.
- U.S. Securities and Exchange Commission. “Real Estate Investment Trusts (REITs),” Page 1. Accessed August 13, 2020.
- Tax Foundation. “Dividend Tax Rates in Europe.” Accessed August 14, 2020.
- Yahoo Finance. “General Electric Company (GE).” Accessed August 13, 2020.
- GE. “GE Plans to Reduce Quarterly Dividend in Conjunction with Revised Capital Allocation Framework.” Accessed August 13, 2020.
- The Nobel Prize. “THIS YEAR’S ECONOMICS PRIZE AWARDED FOR PIONEERING STUDIES OF SAVING AND OF FINANCIAL MARKETS.” Accessed August 13, 2020.
- JSTOR. “Dividends, Earnings, and Stock Prices.” Accessed August 14, 2020.
- Deliotte. “International Tax - Hong Kong Highlights 2019,” Page 1. Accessed August 14, 2020.
Based in New York, Kate Bluest has been writing for various online publications since 2005. She has participated in several writing workshops, including the MIT Writing Workshop. Bluest holds a Bachelor of Science in business administration from SUNY Empire State College.