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    TomOle's Avatar
    TomOle Posts: 1, Reputation: 1
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    #1

    Nov 1, 2015, 10:36 AM
    What account type does the disbursements to the owners (shareholders) of a carry back
    > Sold all assets of a small S corporation; ( sold business but corporation sill exists.
    > Corporation took a carry back note from the buyers for 60 months.
    > Buyers send monthly check to the corporation.
    > when the corporation then writes check(s) to the corporation owners WHAT ACCOUNT AND TYPE SHOUND THE CHECKS BE POSTED IN? (EQUITY, ASSET, or WHAT?).

    Thanks a bunch.

    P.S. We can't end the corporation until the loan is paid back in full.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Nov 2, 2015, 01:56 AM
    If I understand what you have written, you should have established a loan account (asset) into which to receive the payments If you are paying the owners (Dividend) or returing capital then reduction of Issued Capital
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