Dividends vs DLA

[degenerationx]

Hi everyone,

I've just had my first sent of company accounts produced. It shows the dividends withdrawn. Later it shows that my DLA has increased by that same value. I'm trying to understand how that makes sense i.e. how does the removal of my dividends increase the DLA value? Maybe it doesn't and it is just shown that way for accounting purposes?

 

[Bob]

Sorry but at first glance, doesn't make much sense to me either. The dividends are an appropriation of the profit. Should only increase the DLA if they have been credited there in advance

 

[Energise Accounting]

Have you actually received the cash for your declared dividends? If not this will be the reason for increasing your DLA.

 

[MyAccountantOnline]

Hi everyone,

I've just had my first sent of company accounts produced. It shows the dividends withdrawn. Later it shows that my DLA has increased by that same value. I'm trying to understand how that makes sense i.e. how does the removal of my dividends increase the DLA value? Maybe it doesn't and it is just shown that way for accounting purposes?

It sounds to me like the dividend hasnt actually been physically paid so its been added to your DLA ie its increased the amount the company owes you.