Question regarding 'Due To Shareholders'

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Dec 11th, 2018 11:13 am

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Dec 10th, 2018 12:44 pm

masarwar [OP]: Deal Addict; Jan 13, 2014; 1392 posts; 433 upvotes; Calgary

Dec 10th, 2018 12:44 pm

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

Dec 10th, 2018 1:06 pm

QN5252: Sr. Member; Nov 12, 2014; 768 posts; 491 upvotes; Kingston, ON

Dec 10th, 2018 1:06 pm

If shareholder paid expenses on behalf of the corporation.

+1

Dec 10th, 2018 2:07 pm

masarwar [OP]: Deal Addict; Jan 13, 2014; 1392 posts; 433 upvotes; Calgary

Dec 10th, 2018 2:07 pm

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.

Dec 11th, 2018 10:13 am

Ck2: Jr. Member; Jan 19, 2004; 199 posts; 38 upvotes

Dec 11th, 2018 10:13 am

Yes, or the dividends could just be a payable if it is to be paid in the next 6 months.

http://www.heatware.com/eval.php?id=25089

Dec 11th, 2018 11:13 am

choclover: Deal Fanatic; Oct 7, 2007; 5080 posts; 1768 upvotes

Dec 11th, 2018 11:13 am

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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