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Dividend scenario 5

Deposits by the director

Let’s say a Director deposits £1000 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 £1000 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 £1000 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: 14 Sep 2015 11:15AM BST

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