In accounting, if someone opens a business with $1,000 , $600 being on loan from parent, how do you record?

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In accounting, if someone opens a business with $1,000 , $600 being on loan from parent, how do you record?

How do you record in a journal $1,000 to start a business. $600 is a loan from a parent and the other $400 is out of your own money?

2006-11-13 11:04:28 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance

2 answers

Debit Assets $1000, Credit loan payable 600, Credit Paid in capital/Equity $400

2006-11-13 11:09:07 · answer #1 · answered by kjhenkel 2 · 2⤊ 0⤋

Your parents are a creditor, and your cash is an investment in the business if you are not going to take it out. If so, you are also a creditor. It's better to keep your personal cash seperate from the business.

2006-11-13 19:07:57 · answer #2 · answered by Joe S 6 · 0⤊ 0⤋