Dividends Debit Or Credit

Is Dividends Debit Or Credit Account / Dividends Normal Balance / Dividends Is Which Type Of Account

The normal, positive or usual balance of Dividend is debit as it is a Contra Equity Account which is deducted from the balance of Equity on Statement of Retained Earnings. However, the negative or unusual balance of dividend is credit.

Moreover, when dividend is closed to Statement of Retained Earnings, then we credit it at the end of the accounting period.

Dividend is debit on Trial Balance and dividend payable is credit as it is a current liability which is payable by the company to shareholders.

Are Dividends Assets, Liabilities Or Equity

Dividends is a contra equity account, so it is deducted from retained earnings, so it decreases equity account on balance sheet.