Due To Account

DEFINITION of 'Due To Account'

A liability account typically found inside the general ledger that indicates the amount of funds currently payable to another account. The 'due to' is used in conjunction with a 'due from' account to reconcile from which account the money will be coming, and to which is will be going.








BREAKING DOWN 'Due To Account'

The general ledger is the centralized source that contains all of the financial accounts for a company. It contains debit and credit accounts, including the due to account, which is a credit account. The due to account is also sometimes referred to as "intercompany payables" account.








RELATED TERMS
  1. Accounts Payable Subsidiary Ledger

    An accounting ledger that shows the transaction history and amounts ...
  2. Account History

    All activity within an account, usually since inception. In a ...
  3. Chart Of Accounts

    A listing of each account a company owns, along with the account ...
  4. Adjunct Account

    An account in financial reporting that increases the book value ...
  5. Ledger Balance

    The balance of a customer account as shown on the bank statement. ...
  6. Current Liabilities

    A company's debts or obligations that are due within one year. ...
Related Articles
  1. Personal Finance

    What is an Account Balance?

    An account balance represents the total amount of money in a financial account at any given moment.
  2. Investing

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  3. Managing Wealth

    Accountant: Job Description & Average Salary

    Discover what the job description of an accountant entails, along with education and training, salary and skills necessary for success.
  4. Investing

    What Does Debit Mean?

    Debit is an accounting term used to refer to the left side of an accounting journal entry. Each debit must be offset by an equal credit entry.
  5. Investing

    Handling High-Yield Savings Accounts

    Is this the savings route for you? Read on to find out what these accounts have to offer.
  6. Personal Finance

    Understanding Savings Accounts

    A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
  7. Personal Finance

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  8. Markets

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  9. Investing

    A Day In The Life Of An Accountant

    An analysis of the accountant profession, who becomes an accountant, what they do, where they work, and salary ranges.
  10. Trading

    Forex Basics: Setting Up An Account

    The line between profitable forex trading and ending up in the red may be as simple as choosing the right account.
RELATED FAQS
  1. What is the difference between accrual accounting and accounts payable?

    Understand the difference between accrual accounting, an accounting method, and accounts payable, which is a ledger entry ... Read Answer >>
  2. Are accounts payable an asset?

    Find out why the general ledger accounts payable is considered to be a current liability, not a current asset, and how it ... Read Answer >>
  3. Are accounts payable a liability?

    Take an in-depth look at accounts payable, or trade payable, an important current liability account listed on a company's ... Read Answer >>
  4. What is double entry bookkeeping and how does it work in the general ledger?

    Learn about the double entry method of bookkeeping and how it works in the general ledger. Every accounting transaction has ... Read Answer >>
  5. How are accounts payable listed on a company's balance sheet?

    Find out how accounts payable is listed on a company's balance sheet, why it is considered a current liability, and how it ... Read Answer >>
  6. What is the difference between an accrual and an account payable?

    Understand the difference between an accrual and an account payable. Learn how an accrual and an account payable affect a ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center