How to include a shareholder loan amount in your personal income

Question

6098 viewsDecember 2, 2019

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Carrie (anonymous) Posted November 29, 2019

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?

1 Answer

score 0 · Answer 1 · 2019-12-02T16:00:49+00:00

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).

How to include a shareholder loan amount in your personal income

1 Answer

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