Netlinkaccess - All about Payroll Services and Accounting
*Home>>>Accounting Company

In accounting, when an partner borrows money from the company what account do I put that under?

My two options are 1)Accounts receivable-partner's name(current asset account) or 2)Note-partner's name(other current liability)

I know loan to shareholders would be the best option, but I can only choose from one of the two choices I listed

If he signed a written promissary note to repay the money, then note payable (#2).

If not, then accounts receivable (#1).

loan to shareholders

The two catagories you're given are insufficent in an accounting setting. It has to be listed as a loan to officer.

The second choice.

Your best bet would be to put his name on the nominal ledger. You can still print it off at period end and give him a copy as his bill/invoice. When he borrowed the money he should have signed some form of document stating this. If it was a small amount, put it through the petty cash ledger.

Tags
　　Accounting Education 　　Accounting Services 　　Accounting Career 　　Accounting Jobs 　　Small Business Accounting 　　Accounting Company 　　Accounting Firm 　　Tax Accounting 　　Cost Accounting 　　Accounting Bookkeeping 　　Managerial Accounting
Related information
  • What, if any, accounting is required by a company when one of its stockholders sells stock to someone else?

    Nothing needs to be done to the corporation's accounts when one shareholder sells his or her shares to another person. If the company bought or sold the shares, it would be a different matter...

  • Accounting question #2 for Cambridge Company?

    Your original TB either has a transposed # in the thousands column or you're missing a 9,000 balance. But, using the #s above (with the 9,000 discrepancy): Cash 5,550 A/R 28,350 Unbilled...

  • This is a technical accounting question about international intangible assets held by a U.S. Company?

    Yes. The trademark is revalued because the Italian "sub-subsidiary" has a functional and recording currency of Euro. The trademark remains at cost in Euros on the Italian books and then...

  • What is function of management accounting in one company?

    I am an office manager for a small construction consulting firm, and my duties include handling all phases of bookkeeping, monthly invoicing, payroll, payroll taxes, paying all the personal and bus...

  • Accounting j/e for transfering $ from one company to another?

    This actually requires two JE's. Each company should have its own set of books and because the money is leaving one company and entering another, you need to make an entry in both sets of boo...

  • How we will explain following ratios in accounting...if current ratio of a company increasing from last year?

    current ratios are determined by dividing the current assets by the current liabilities and these figures represent the companies day to day operating position an increase in the current ratio in...

  • Write a 2 pages reports describing the nature of accounting function in large company in year 2020?

    I hope you're not asking anyone here to write your report...because if you are, you shouldn't be, and if anyone does it for you, they do you a great disservice.

    ...
  • How does the cash basis accounting statement benefit a company?

    Cash basis accounting is a very simple form of accounting. When a payment is received for the sale of goods or services, a deposit is made, and the revenue is recorded as of the date of the receipt...

    • 　

    Categories--Copyright/IP Policy--Contact Webmaster