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Nov 29, 2019 4:52 am
I have a Shareholder Loan that I need to clear by end of 2019 and add it to my personal income. I am wondering what is the best way to do that and what accounts do you debit/credit in the journal entry?
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Dec 02, 2019 4:00 pm
So long as the company has sufficient retained earnings, clear the shareholder account through the 'cash dividends' account. Record the following entry: (a) Debit Cash Dividends (equity), and (b) Credit Shareholder Receivable (asset).