2006-10-24 07:43:46 · 8 answers · asked by audrey j 1 in Business & Finance ➔ Small Business
No, it's a liability to you. The only businesses that consider loans capital are banks.
2006-10-24 07:52:25 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If your talking about a business, the loan is recorded as:
Cash is a debit for loan amount (Asset)
Loan principal amount is a credit (liability)
The Interest is an expense when paid or accrued depending on how you do your books cash or accrual.
Assets - Liabilities = Owners capital
As you pay the loan down it automatically is turned to Owners capital
Make any sense?
If it's a personal loan it may or may not be Income and Interest may or may not be deductable theres a lot of facts you need there.
2006-10-24 07:54:31 · answer #2 · answered by Anonymous · 1⤊ 0⤋
No. A loan is a liability and should be included under 'Creditors'. The cash you injected or items purchased, using the loan monies, such as buildings, fixtures and fittings, vehicles or stock should be included in your Capital Account.
2006-10-24 07:53:13 · answer #3 · answered by quatt47 7 · 1⤊ 0⤋
No, loans are always liabilities. How your balance sheet reads depends very much on how you set up your G/L accounts. Just remember....Loans are liabilities....you owe them.
Good luck!
2006-10-24 08:38:07 · answer #4 · answered by Loli M 5 · 1⤊ 0⤋
No...
Loans do not form a part of capital and are to be separately disclosed as borrowings.
2006-10-24 07:46:24 · answer #5 · answered by king_con 3 · 1⤊ 0⤋
Yes.
Capital means:
. assets remaining after deduction of liabilities; the net worth of a business.
b. the ownership interest in a business.
2006-10-24 07:46:59 · answer #6 · answered by Andrew B. 4 · 0⤊ 1⤋
It's considered an asset. I guess that's the same thing.
2006-10-24 07:47:30 · answer #7 · answered by The Bird 3 · 0⤊ 1⤋
You sure do.
2006-10-24 07:44:45 · answer #8 · answered by Anonymous · 0⤊ 1⤋