At the end of the year a company declared a final cash dividend out of its retained earnings.The journal entry to record the declaration is:

Name: At the end of the year a company declared a final cash dividend out of its retained earnings.The journal entry to record the declaration is:
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When a company declares a dividend, it reduces retained earnings and creates a liability for the dividend payable. Hence, Retained Earnings is debited and Final Dividend Payable is credited.

At the End of the Year a Company Declared a Final