On 30th September 2024 Carlos Ltd. declares dividends of £98,000. On 1st November 2024 the company pays 20% of the declared dividends. Considering all the journal entries related to these transactions, which of the following statements is true?

Question

Accepted Answer

None of the options are correct

Answer

Carlos Ltd. increases assets by £19,600 and increases equity by £98,000.

Answer

Carlos Ltd. decreases equity by £98,000 and increases liabilities by £47,600.

Answer

Carlos Ltd. increases liabilities by £78,400, decreases assets by £20,400 and increases equity by £98,000.

Crowdly

On 30th September 2024 Carlos Ltd. declares dividends of £98,000. On 1st Novembe...

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