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Question · Interest and dividends: classification decides

Ondine SA has issued preference shares with a total nominal value of 1,500,000, classified as a financial liability. The contract sets an annual dividend of 8 % of the nominal, due for the year and not yet paid (case data). Record the entry for the dividend of the year.

Nominal value of the shares classified as a liability
1,500,000
Annual dividend rate
8 %
Your answer
  1. Line 1

    Account Finance cost on shares classified as a liability

  2. Line 2

    Account Dividends payable

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