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Dividend scenario 5

Deposits by the director:

Let’s say a Director deposits £1,000 of his own money into the company bank account.

This money is then used to pay for the company’s expenses.

The "Maximum Dividend available" will reduce by £1,000 because of the expenses that have been recorded, however, the bank balance of the company will remain the same because the expenses have been cancelled out by the director’s depositing £1,000 into the company bank account.

This is part of a troubleshooting series on 'Why does the maximum dividend available not match my bank balance?'

Last Updated: 13 Nov 2019 11:56AM GMT

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