In transaction analysis, the declaration and payment of dividends is recorded in the and columns of the accounting equation.

To complete the statement above:

In transaction analysis, the declaration and payment of dividends are recorded in the Retained Earnings and Cash columns of the accounting equation.

Retained earnings are the bit of an organization's wage that administration holds for interior operations as opposed to paying it to proprietors in the type of profits. The announcement of held profit, a fundamental money related articulation under GAAP rules, clarifies changes in held income over the detailing time frame - more often than not the monetary year. Retained earnings is computed by including net salary and subtracting profits from the adjust of held income toward the start of the period.