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you divide the total money the company has by the amount of shares that have been sold to get the share value, then you dish that out and then it is the shareholders money and they can do what they want with it

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Q: How do you account for shareholders profit sharing?
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Continue Learning about Accounting

How do you construct sundry shareholders account in purchase and sale of business?

by crediting the said account with relevant accounts falling under shareholders equity e.g. share capital, profit. reserves etc.


What is the effect of a stock dividend on a corporation's stockholders'equity accounts?

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.


What is revaluation account?

revalutation account is opened to record the revaluation of assets and liabilities.the profit or loss arising because of revaluation is transfered to old partners capital account in their old profit sharing ratio. Companies from time to time check the values of assets and liabilities for there book values and if there is some changes in book values of assets and liabilities that revaluations are made through revaluation account which are later charge to profit and loss account or transferred to reserve account.


What is the Difference between income statement and profit and loss account?

Both are sameIncome statement shows both operating and non-operating amounts. Revenue, Net profit/loss and profit per share. I think you are thinking of the Balance sheet that lists assets, liabilities and shareholders' equity.


What is the non divisible profit?

Non devisable profit is that portion of profit which is not available to distribute to shareholders in the form of dividend which is called retained earnings.

Related questions

How managers can be motivated to act in the shareholders' interest?

Profit sharing, the more money the manager makes, the more the shareholders make.


How do you construct sundry shareholders account in purchase and sale of business?

by crediting the said account with relevant accounts falling under shareholders equity e.g. share capital, profit. reserves etc.


Can C corporations have shares?

A C corporation is required to have shares - it is how ownership, profit sharing, and decision making is divided among the shareholders.


What is a charitable sharing account?

Charitable Sharing Accounts are accounts used to create a Sharing agreement between a Donor and a Nonprofit. It is a type of Social Fundraising tool to assist Nonprofits in creating income for their mission. The Charitable Profit Arrangement intermediates these type of Sharing accounts on behalf of the Donor and the Nonprofit. There are many different types of Sharing Accounts that the Charitable Profit Arrangement uses; Alumni Sharing Account, Catholic Sharing Account, MU Sharing Account and any other combination that people can think of. This information is based on the facts from the authority and site; www.CharitableProfitArrangement.Org


What is the shareholders goals?

Profit


How does profit sharing work?

formula of profit sharing bonus


What are the rules for distribution of profits and losses?

according to the sharing ratio's of partners, we can distribute profit and loss account.


What is the part of the profit that is shared with the shareholders?

Dividend


Who gains profit in a corporation?

Normally the shareholders.


What is devided?

it is the amount of profit distributed to the shareholders


Who made profit sharing?

Nobody really made profit sharing. Profit sharing is an idea that blossomed because it was the most efficient way of moving forward.


What has the author J J Jehring written?

J. J. Jehring has written: 'Profit sharing' -- subject(s): Bibliography, Profit-sharing 'Succeeding with profit sharing' -- subject(s): Profit-sharing 'Pre-severance benefits in deferred profit sharing' -- subject(s): Profit-sharing 'A comprehensive bibliography on total group productivity motivation in business covering such subjects as profit sharing, productivity sharing, employee stock ownership and employer-employee cooperation' -- subject(s): Bibliography, Incentives in industry