Please provide and explain the the journal entry required to record dividends received under the equity...

Please provide and explain the the journal entry required to record dividends received under the equity method by the Investor company and the journal entry required for the payment of dividends by the Investee company ?

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Ams: Investor Company:

Cash A/c Dr xxx

To Investments in Associates xxx

(being dividend income reduced the value of investment)

Investee Comapany

Dividend Payable Dr xxx

To cash xxx

(being dividend declared is paid)

ekkarill92 answered 1 year ago

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