Explain the effect on the accounting equation of the following transactions and decisions regarding dividends (a) The company pays a dividend of 20,000 during the accounting period (b) The directors recommend a dividend of 30,000 at the end of the accounting year It will be paid following sharehold...

All the amounts are in a The accounting equation is as follow Assets Liabilities Ow ...

Explain the effect on the accounting equation of the following transactions and decisions regarding dividends: (a) The

Question:

Explain the effect on the accounting equation of the following transactions and decisions regarding dividends:
(a) The company pays a of £20,000 during the accounting period.
(b) The directors recommend a of £30,000 at the end of the accounting year. It will be paid following shareholder approval at the Annual General Meeting, held two months after the accounting year-end?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...