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Loan account opening balance

graeortgraeort Member Posts: 2

Hi. I have a loan account that I need to transfer into wave. I have set up a shareholder loan account (liability). There is no option to add an opening balance. If I do a journal it will inflate the expense account for the following year. It was not a cash balance. Any help please!

in Accounting Technical Support

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    graeort,
    Transferring a liability to the business would not affect the income statement. By contributing a liability to a business you are reducing your equity in it. Not sure on the business structure but you mentioned Shareholder Loan. I would make the entry of Debiting Shareholder Loan and crediting the liability you set up that the business will now be paying for.
    Hope that helps.
    Mike G, CPA
    www.mgfinancial.net

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