Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
Hello Allan,
I been following you on youtube and your videos are awesome A1 quality.
I am a Calgary accountant with my own practice, I have been recently struggling with fully applying the shareholder loan to the T or 100% was wondering to see if you can fully explain it to me.
Where does this shareholder account fall on the company's balance sheets etc. And eventually do you need to pay it back??
Thanks.
The shareholder loan represents the money that your company owes you for expenses that you paid on behalf of your company, less shareholder loan repayments made to you.
For example, assume that you paid $40,000 of expenses on your company's behalf during the year. Of the $40,000, your company had repaid you $15,000. This means that the shareholder loan balance owing to you is $25,000. The shareholder loan should be disclosed in the liabilities section of the balance sheet.