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 |
|
|
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.