Account is Asset if monies owed to SH and Equity if company owes SH money

[sailorca]

Hi guys,

Thanks for the response.   What I mean by Shareholder Loans is simple money
owed to or from a shareholder.  These loans are considered separately from
loans from unrelated entities in Canadian corporate taxes.  I don't know why
exactly except that by end of year the company should not have any loan
assets (due from) from non-corporate shareholders.  Otherwise this has to be
declared properly on the shareholders income tax form and should properly be
declared as a dividend.  This is what my accountant told me.

However, I don't see any difference in putting loans under Assets (due from)
and Liabilities (due to) from a Balance Sheet point of view.  It would
certainly make it clearer to me to move money owed to  / from shareholders
from Equity to Long Term Liabilities / Assets and I will do that.

However, I would still like to use these account as a running balance of
transactions.  This would mean the account would either be a Liability (owed
to shareholder) or Asset (owed from shareholder).  

Is there a way for the account to appear on the correct side of the Balance
Sheet depending on current balance?

Thanks again for the time,
Donald



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