Amount due from director意思
"Amount due from director" is a term commonly used in accounting and finance, particularly in the context of corporate finance and auditing. It refers to the amount of money that is owed to the company by its director(s). This can arise in various situations, such as:
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Loans: If a director has loaned money to the company and the company has not yet repaid the loan, the amount outstanding is an amount due from the director.
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Overdrawn Current Account: If a director has an overdrawn current account with the company (i.e., the director has withdrawn more money from their account with the company than they have deposited), the overdrawn balance is an amount due from the director.
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Share Capital: If a director has not yet paid for shares they have subscribed to, the unpaid amount is an amount due from the director.
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Reimbursements: Sometimes directors may advance money to the company for expenses, and the company may owe them money back. This would also be an amount due from the director.
It's important to note that transactions between companies and their directors are often subject to strict rules and regulations to prevent conflicts of interest and ensure transparency. These rules can vary depending on the jurisdiction and the type of company (e.g., private vs. public).
In financial statements, the amount due from directors is typically disclosed in the notes as a current asset, unless there are concerns about the director's ability to repay the debt, in which case it might be treated as doubtful and disclosed accordingly.