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. Due From Account

    An asset account in the general ledger that indicates the amount ...
  2. Accounts Payable Subsidiary Ledger

    An accounting ledger that shows the transaction history and amounts ...
  3. General Ledger

    A company's main accounting records. A general ledger is a complete ...
  4. Accounts Receivable Subsidiary ...

    An accounting ledger that shows the transaction and payment history ...
  5. Account History

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

    A listing of each account a company owns, along with the account ...
Related Articles
  1. Investing

    What's a General Ledger?

    As the heart of the double-entry accounting system, the general ledger is the record of a company's entire financial transaction history. The left side of the general ledger is for debits: assets, ...
  2. Credit & Loans

    What is an Account Balance?

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

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  4. Executive Compensation

    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.
  5. Economics

    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.
  6. Savings

    Understanding Savings Accounts

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

    What does Accrual Mean?

    In accrual-based accounting, transactions are recorded on the books as they occur, even if payment has not yet been received or made. Accruals represent liabilities and non-cash-based assets. ...
  8. Savings

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  9. Economics

    Explaining the Accounting Equation

    The accounting equation is the basis for double-entry accounting, and requires that every business transaction affect two accounts equally.
  10. Economics

    Explaining Double Entry Accounting

    Double entry is an accounting and bookkeeping term describing the method of entering transactions into the accounting records.
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. Why is reconciliation important in accounting?

    Learn about accounting reconciliation and its importance for individuals and businesses to help prevent fraudulent activity ... Read Answer >>
  5. Are accounts payable counted as revenue?

    See how accounts payable is treated on the balance sheet, and why it is considered an expense and liability rather than revenue ... Read Answer >>
  6. Are accounts payable an expense?

    Learn about how to differentiate between liability accounts and expense accounts, and see why accounts payable is considered ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center