Dividends: debit or credit?
Dividends increases on the debit side and decreases on the credit side: its normal balance is a debit.
A contra-equity account reduces equity, such as the owner’s drawings or own shares bought back. It increases with a debit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Dividends |
| Spain (PGC 2007) | — |
| France (PCG 2025) | — |
| Germany (generic accounts) | — |