To pay the dividend, you post a bank payment to reduce your bank account balance and the balance on the Dividend Liability nominal code.

1. Go to Bank accounts then select Bank payment.
2. Enter the details for the bank payment in the boxes provided, for example:

   Bank	Date	N/C	Details	Net	T/C	Tax
   1200	Payment date	2290	Payment of dividend	5000.00	T9	0.00

3. Click Save then click Close.

You've now recorded the payment of the dividend. After posting this bank payment, the balance on the Dividend Liability nominal code will be zero.

Post a journal to the Profit and Loss nominal code

After posting dividend transactions, the balance remains on the Dividend nominal code, 3201. Move this balance to the Profit and Loss nominal code during the year, or after running the year end. This ensures the Dividends balance only relates to the current year.

1. Go to Nominal codes then select Journal entry.
2. Enter a date, reference and any relevant information to record the transfer of the dividend liability. For example:

   N/C	Name	Details	T/C	Debit	Credit
   3200	Profit and Loss Account	Dividends	T9	5000.00
   3201	Dividends	Dividends	T9		5000.00

3. Click Save then click Close.

 You've now recorded the transfer from the Dividend nominal code to the Profit and Loss Account nominal code.

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