Diebit balances in directors account
This query is : Resolved
16 April 2009
Dear Sir/Madam
Please prescribe the treatment for the debit balances in directors account who are also the shareholders of the company.
Thanks & Regards
CA Sayeeda Banu
Please prescribe the treatment for the debit balances in directors account who are also the shareholders of the company.
Thanks & Regards
CA Sayeeda Banu
Deepak Goel
(Expert)
16 April 2009
Director's account balance never be debited. Director can give loan to company but they cannot take loan from co. Director should return should their amount immediately.
17 April 2009
Hi
Actually the directors loan account is having a debit balance. I want to know how the company should deal with this and what are the consequences of writting off of this balance. Can it could be settled by declaring dividend.
Please give me the accounting entries to be passed by the company.
Actually the directors loan account is having a debit balance. I want to know how the company should deal with this and what are the consequences of writting off of this balance. Can it could be settled by declaring dividend.
Please give me the accounting entries to be passed by the company.
HUZAIFA HUSSAIN
(Expert)
17 April 2009
Just calculate the interest and if the debit balance is less than the interest than treat the balance as interest. or else see if any remuneration or incentive payable to directors and trf. the debit balance to such accounts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GSTR9 Annual Return
- Employee secondment
- Ito add credit side of bank
- Gift to nri relatives resides in usa
- IMS (import of goods) ITC related
- Applicability of tax on invoice
- LLP audit and disclosure
- Form 144 TDS Return Validation Error – Mandatory Fields
- Rent agreement of House of deceased person
- Capital gain on commercial property and investment in residential property
- Import of Capital Machine
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
