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Confused on how to record a start up transaction.

cheche Member Posts: 1

I am starting a company and plan to put some money in it to start functioning. I was reading about Owner investment/withdrawing, however, I was thinking more of a loan from me to the company. Would I still use the Owner Investment/Withdrawing? Or would I put that as a Liability? And finally how would I log all that in the transaction? (For example purposes, I created a liability account named Che's Loan. On a journaled entry, I debited 2000 to Che's Loan and Credited 2000 on Cash on Hand). Any input will be appreciated!

in Accounting Technical Support

Comments

  • MaryCassMaryCass Member Posts: 8

    You seem to have this on lockdown, @che! That's how I'd handle it. Wouldn't be a bad idea to make it your business' bank account instead of Cash on Hand, just to be a little cleaner, but that's not absolutely necessary either.

    And hey, grats on starting your business! What field are you in?

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