How do I go about Paying out Dividends?

Hi there, 

Great to have you post in our Community. It's important you pay out the dividends the best way possible. To make sure the transactions are handled accurately, I recommend reaching out to an accounting professional. If you're not in contact with one, I recommend searching for one on our website using this link here. Let me know if you have other questions. I'm here to assist. 

An Ltd company should have a shareholder meeting where a dividend payout is authorized as of a certain date in the future.

then a journal entry to move funds from retained earnings to dividends payable

debit retained earnings, credit dividends payable

on the pay date you write checks and use dividends payable as the expense (reason) for the payment