treatment of dividends in accounts

[monicag]

Hi, hopefully I am just having a bad day, but can't think how to treat dividend payments in the year end accounts. According to the dividend voucher the paid amount was £975.00 which is made up of gross £1,083.33 less tax credit of £108.33. Obviously there is a difference between the gross and net but how do I show this in the accounts.

Thanks for any assistance you can provide.

Regards

[elainec100@cheapaccounting]

Entries in accounts are as follows:

debit dividends £975
credit bank £975

the tax credit is a notional amount only and not recorded in the company accounts