Which of the following happens at the date of record?
A)Dr.Dividends declared, Cr.Dividends payable
B)Dr.Dividends declared, Cr.Cash
C)No entry is made in the accounts, but a list of shareholders entitled to receive the dividend is prepared.
D)The board of directors approves the dividend but no entry is made in the accounts.

Question

Quizplus · Accepted Answer

At the date of record, no entry is made in the accounts but a list of shareholders entitled to receive the dividend is prepared. This is because the date of record is the cutoff date for determining which shareholders are entitled to receive the dividend. The company prepares a list of shareholders based on their shareholding as of the date of record and dividends will be paid only to those shareholders whose names appear on the list. No accounting entry is required at the date of record because it is merely a record-keeping date.

Which of the Following Happens at the Date of Record