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Shareholders loans

CharlotteKroukamp09CharlotteKroukamp09 Member Posts: 1
Help me with shareholders loan accounts. Help me to capture the transaction correctly. One partner buy material for the new company. To Which account ???
in Accounting Technical Support

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    If you have more than one shareholder I would set up a Shareholder Loan account for each person. The entry for your question would be debit Materials (Expense) Credit Shareholder Loan. One caveat: If the "material" is inventory (meaning for resale) then debit Inventory (asset)
    Mike G, CPA
    www.mgfinancial.net
    Better Service - Better Pricing

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