The accounting entries for profit sharing are described as follows:
Borrow: Profit Distribution - Shareholders' Dividends; Credit: Dividends Payable. Should withholding personal income tax debit: dividend payable credit: tax payable - withholding personal income tax. Cash: at the end of the month when the tax is paid borrow: tax payable - personal income tax credit: bank deposits.
Dividend is a joint-stock company in the winnings of a certain percentage of the share of the stock each year to pay dividends to investors, is a listed company's return on investment to shareholders, dividends are the earnings of the year, in accordance with the provisions of the statutory provident fund, public welfare fund and other items to shareholders after the release of the shareholders is a way of shareholders' earnings, usually shareholders get dividends will continue to invest in the enterprise to achieve the effect of compound interest.
Dividends payable refers to the enterprise according to the shareholders' meeting or similar body to consider the approval of the profit distribution program to determine the distribution of cash dividends or profits to investors. It mainly includes the investment profits payable to the state, other units as well as individuals. Enterprises and other units or individuals of the cooperative project, according to the agreement or contract, should be paid profits of the joint fee industry can also be included in the dividends payable.
Dividend is a joint-stock company in the profits of a certain percentage of the share of stock each year to pay dividends to investors. Can be simply understood as a listed company's return on investment to shareholders. Dividend is a way of shareholders' earnings, meaning that the earnings of the year, after the required withdrawal of legal reserve, public welfare fund and other items to shareholders. Common shares are eligible for dividends, while preferred shares are generally not. Joint stock companies can distribute dividends only when they make profits.
Generally speaking, shareholders can realize the right to dividends in three forms, namely, cash distribution from the current year's profit of the listed company; distribution of new shares from the current year's profit of the company; and conversion of the company's surplus reserve into share capital.