Accounting for dividends

[missspeedy23]

My hubby has his own Ltd company along with another director and I do his accounts for him but I'm not sure where/how to show dividends in the accounts.

I've read today that dividends are inclusive of a 10% tax credit so I assume by this that the £295 they received a couple of months ago actually cost the company £327??

what entries do I need to make in the accounts to show the dividends? At the moment I've debited the dividend account (which I've got in overheads) and then credited the bank, both with £590 but not sure I've done this right now.

Any help would be greatly appreciated!!

Thanks in advance
Jo

[tkessex]

This might offer some help:

http://www.diyaccounting.co.uk/artic...tax_credit.htm

A quick scan of HMRC's website, and that of the ICAEW, could also prove fruitful.

[DIY Accounting]

Thank you for posting the link.
Hope members found the free dividend tax voucher useful