Entrepreneurship & Small Business

Question regarding 'Due To Shareholders'

  • Last Updated:
  • Dec 11th, 2018 11:13 am
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[OP]
Deal Addict
Jan 13, 2014
1392 posts
433 upvotes
Calgary

Question regarding 'Due To Shareholders'

Hi,

can anyone explain to me why would a "due to shareholder increase"? my understanding is that it would either be two of the following reasons:

- Shareholder loaning money to business
- Business declared dividends but havent paid them yet

Is there any other reason? thank you
4 replies
Sr. Member
Nov 12, 2014
768 posts
491 upvotes
Kingston, ON
If shareholder paid expenses on behalf of the corporation.
[OP]
Deal Addict
Jan 13, 2014
1392 posts
433 upvotes
Calgary
QN5252 wrote:
Dec 10th, 2018 1:06 pm
If shareholder paid expenses on behalf of the corporation.
Thank you. So the reasons i stated are correct as well? its been a while since i last touched my Accounting and taxation books.
Deal Fanatic
Oct 7, 2007
5080 posts
1768 upvotes
Due to Shareholder is exactly that. So any reason in addition to those already mentioned that would cause the funds owed by the company to the shareholder to go up could account for the amount. But I think the most common reasons have been covered.

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