Results 1 to 2 of 2

Thread: Company Debts paid by Shareholder

  1. #1
    Junior Member
    Join Date
    May 2019
    Location
    Johannesburg
    Posts
    22
    Thanks
    8
    Thanked 0 Times in 0 Posts

    Company Debts paid by Shareholder

    Hi All,

    So when a Shareholder sells a personal asset, and uses the funds to settle company debts (in cash), how do I record the transaction(s)?

    Can I simply enter a petty cash receipt of the total amount of debts paid, using the shareholder's loan account, and from there post petty cash payments to the relevant creditors?

  2. #2
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    Yes. In the end the trade creditor has been debited and the shareholder credited.

Similar Threads

  1. Accounting for personal insurance paid by the company
    By Tuna in forum Accounting Forum
    Replies: 3
    Last Post: 20-Jan-20, 04:19 PM
  2. [Question] Adding a shareholder to our company
    By Tums in forum General Business Forum
    Replies: 3
    Last Post: 04-Aug-18, 09:50 AM
  3. [Question] Shareholder/Director Salary not paid but owed.
    By Meganika in forum Business Finance Forum
    Replies: 6
    Last Post: 01-Jul-16, 12:20 PM
  4. [Question] Non resident shareholder in a private company
    By Steph99 in forum Tax Forum
    Replies: 0
    Last Post: 08-Jul-15, 10:03 AM
  5. [Question] What is the implication of the death of a shareholder on a company?
    By BusFact in forum General Business Forum
    Replies: 15
    Last Post: 31-Jan-11, 08:55 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •