Dividends paid on ordinary shares (net of any related income tax benefit) should be analysed to the Profit and loss account: Equity dividends account.
Provided that corporation tax has been accounted for on profits (see taxation topic), the total amount of dividends that can be paid is normally the closing balance on the profit and loss account in the Display>Balance Sheet report.
Dividends paid on preference shares are normally analysed to the Expenses: Non-equity dividends account. However, depending on the nature of the preference shares, the dividends paid may be required to be analysed to the Profit and loss account: Equity dividends account.
