Where a dividend is declared in a prior period and paid in a current period, the credit in the consolidation elimination entry is made against the dividend declared/paid account.

Question

Quizplus · Accepted Answer

In consolidation, dividends declared by a subsidiary and paid to the parent company are eliminated against the investment in subsidiary account, not against the dividend declared/paid account, to avoid double counting of equity transactions within the group.

Where a Dividend Is Declared in a Prior Period and Paid