Dividends payable or proposed dividend is an account with a normal balance and is initially recorded on the balance-sheet date or closing date.
Proposed Dividend is refer to an amount set aside out of distributable profits earned during the year after deducting all the expenses, losses & accumulated depreciation (if any).
The dividend declaration shall be done by the Board of Directors of the company and approved by the shareholders in annual general meeting (AGM) as a ordinary business.
This is subsequent event occurring after the balance-sheet date. Therefore exceptionally recorded on Balance sheet date i.e. year end.
To know more about proposed dividend or dividend payable refer:
https://brainly.com/question/29509520
#SPJ1
