On 30th June 2024 Charles Ltd. declares dividends of £68,000. On 1st August 2024 the company pays 30% of the declared dividends. Considering all the journal entries related to these transactions, which of the following statements is true?

Question

Accepted Answer

Charles Ltd. decreases equity by £68,000 and increases liabilities by £47,600.

Answer

Charles Ltd. increases assets by £20,400 and increases equity by £68,000.

Answer

None of the options are correct

Answer

Charles Ltd. increases liabilities by £47,600, decreases assets by £20,400 and increases equity by £68,000.

Crowdly

On 30th June 2024 Charles Ltd. declares dividends of £68,000. On 1st August 2024...

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