293 Notes and Accounts Receivable - Officers

Assets

Other

Synopsis

Account 293 is established to record the amounts owed to the dealership by Officers and / or stockholders.

Debits

Credits

  1. Notes and accounts due from active and inactive officers and from stockholders

 

  1. Payments received from officers and stockholders

 

Example 1

Record a loan to an officer of the company in the amount of $10,000.

Journal: Cash Disbursements

Entry:

 

Debit

Credit

Account 293

Notes and Accounts Receivable – Officers

$10,000

 

Account 202

Cash in Bank

 

$10,000

Example 2

Record the $11,000 receipt of cash in repayment of the above loan by an officer of the company that includes $1,000 for interest.

Journal: Cash Receipts

Entry:

 

Debit

Credit

Account 201

Cash on Hand

$11,000

 

Account 293

Notes and Accounts Receivable - Officers

 

$10,000

Account 905

Other Income

 

$1,000

Comments

A debit balance represents notes and accounts due from active and inactive officers and from stockholders.

Note:

1. This account is for use by corporations only.

2. A detail of these items should be made in this account or in a suitable subsidiary record.