Shareholders Loans

Code: 2214
👁 Views: 124

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Loans granted by shareholders to the company

Common Journal Entries

Receive shareholder loan

Dr. Bank Account
Cr. Shareholders Loans

Repay shareholder loan

Dr. Shareholders Loans
Cr. Bank Account

Convert shareholder loan to capital

Dr. Shareholders Loans
Cr. Paid up Capital

Pay interest on shareholder loan

Dr. Interest Expense
Cr. Bank Account

Receive shareholder loan

Dr. Bank Account
Cr. Shareholders Loans

Repay shareholder loan

Dr. Shareholders Loans
Cr. Bank Account

Convert shareholder loan to capital

Dr. Shareholders Loans
Cr. Paid up Capital

Pay interest on shareholder loan

Dr. Interest Expense
Cr. Bank Account

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 470 Debt

❓ Frequently Asked Questions

Q: What are shareholders' loans?

A: Loans provided by shareholders to the company, may be short or long-term, often at lower interest or interest-free.