Accounting for dividends of stocks held for 3rd party
Accounting for dividends of stocks held for 3rd party
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Gerous · External communityPost link
External question — Personal Finance Stack Exchange
Author: Gerous
Original post: https://money.stackexchange.com/questions/134701
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I accurately record the liability after taxes in my books?
Lets say I have the following accounts:
Type
Name
Assest
Brokerage-Account
Expenses
Taxes
Liability
3rdParty
Income
Dividends
E.g. say 100$ dividends, and 15$ deducted in taxes.
If I record this as
Account
Dr
Cr
Dividends
100
Taxes
15
Brokerage Account
85
3rdParty
85
??????
85
In which account do I record the corresponding 85$?
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Gerous Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/134701 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I accurately record the liability after taxes in my books? Lets say I have the following accounts: Type Name Assest Brokerage-Account Expenses Taxes Liability 3rdParty Income Dividends E.g. say 100$ dividends, and 15$ deducted in taxes. If I record this as Account Dr Cr Dividends 100 Taxes 15 Brokerage Account 85 3rdParty 85 ?????? 85 In which account do I record the corresponding 85$?
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