Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I accurately record the liability after taxes in my books? Lets say I have the following accounts: Type Name Assest Brokerage-Account Expenses Taxes Liability 3rdParty Income Dividends E.g. say 100$ dividends, and 15$ deducted in taxes. If I record this as Account Dr Cr Dividends 100 Taxes 15 Brokerage Account 85 3rdParty 85 ?????? 85 In which account do I record the corresponding 85$?

Accounting for dividends of stocks held for 3rd party

Personal Finance & Money Asked by Gerous on January 30, 2021

Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I accurately record the liability after taxes in my books?

Lets say I have the following accounts:

Type	Name
Assest	Brokerage-Account
Expenses	Taxes
Liability	3rdParty
Income	Dividends

E.g. say 100$ dividends, and 15$ deducted in taxes.

If I record this as

Account	Dr	Cr
Dividends	100
Taxes		15
Brokerage Account		85
3rdParty	85
??????		85

In which account do I record the corresponding 85$?

accounting dividends double entry liability

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