Shareholders Loan Account

Question

We have entered a sales invoice generated which is to be paid by a shareholder. How do we record the year end against the shareholder's loan account?

C White · Answer

If you're trying to get it out of the Accounts Receivable system, the easiest way is probably two steps: 
 1. Record a 'receipt' showing it as paid. This will debit a bank account or deposit clearing (incorrectly), and credit accounts receivable (correctly). 
 2. Do a general journal entry to debit the shareholder loan account and credit the bank account or deposit clearing account (fixing the phantom receipt). 
 
 Then, when the shareholder gets around to paying for the item, it will just be a general journal entry to debit bank/credit shareholder loan.

Sage 50 Canada

Shareholders Loan Account

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