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Dividend Taxes is not a company expense but a company's liabilities for the deduction of taxes once Dividends is declared to the members of the company. It must be distinct and cleared from the normal activities of the company's expenses. In this respect, it could be classified as a sub-category of the Dividends Payable. Upon the payment of dividends, the appropriate rate of taxes must be paid on behalf of the Dividend Recipient to the Tax Authority. This would then be a debit entry to Dividend Taxes and a credit entry to the Cash or Bank Account to complete the transaction. The object is to withhold taxes on behalf of the dividend recipient and the company is to then ensure that the taxes are paid to the Tax Authority.
What else can I help you with?
Does dividend go on an income statement?
Dividend payable become liability for business as soon as it declared to be paid and all future liabilities are part of balance sheet so dividend payable also shown under liability section of balance sheet and not part of income statement.
On a balance sheet the accounts pauable and salarys payable would fall under the catergory of?
Accounts payable and salaries payable both are part of current liability of balance sheet and shown there at liability side.
Is accounts payable shown on the balance sheet?
Yes, it's listed as a current liability on the balance sheet.
Interest payable found on the balance sheet?
Interest payable is liability for business that's why shown under liability side of balance sheet of business.
What element of financial statements interest payable belong?
Interest payable is liability to be cleared in future that's why shown in liability side of balance sheet.
Does dividends go on a balance sheet?
Dividends payable are part of balance sheet as liability and shown under liability side of business.
Are salaries listed on the balance sheet?
Salaries are part of income statement if paid while if not paid then payable will be shown in balance sheet.
What is the normal balance of a bonds payable account?
Normal balance of bonds payable account is credit account and it is shown under liability side of balance sheet because these are the amounts payable in future.
Where does sales commission payable go on the multiple step income statement?
Sales commission payable is not part of income statement and it is shown in balance sheet as current liability in liability side of balance sheet.
Is taxes on the balance sheet or the income statement?
If taxes of current period then it will shown in profit and loss account, if taxes are still payable then it will be shown in balance sheet under current liabilities section.
Is mortgage payable debit or credit?
Mortgage payable is liability for business and like all liabilities it also has credit balance and shown in liability side of balance sheet.
Is accounts payable a fixed assets?
Accounts payable is not a fixed asset rather it is a liability for company and shown in liability side of balance sheet.
