Journal Entry To Close Out Distributions (Dividends) To Retained Earnings - Closing Entry For Dividends / Drawings
Journal Entry To Close Dividends Account / Drawings Account Distri b utio ns to s hareholders or stockholders (called Divide nds ) are actually the shares of profits distri b uted amo ng s hareholders or stockholders for the year. To close distributions to shareholder accou nt (dividend account), we record following journal entry: Retained Earnings Account a/c XXX Distributions To Shareholders a/c / Dividend a/c XXX (Distributions To Shareholders Or Dividend Account Closed To Retain...