My two options are 1)Accounts receivable-partner's name(current asset account) or 2)Note-partner's name(other current liability)
2007-10-16 05:59:15 · 5 answers · asked by Me 2 in Business & Finance ➔ Other - Business & Finance
I know loan to shareholders would be the best option, but I can only choose from one of the two choices I listed
2007-10-16 06:03:33 · update #1
He's technically the only employee and really the owner but for legal reasons, he is only shown as an employee.
2007-10-16 06:09:55 · update #2
If he signed a written promissary note to repay the money, then note payable (#2).
If not, then accounts receivable (#1).
2007-10-16 09:06:34 · answer #1 · answered by Plea_of_insanity 5 · 0⤊ 0⤋
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.
2007-10-16 13:07:45 · answer #2 · answered by racey-pacey 6 · 1⤊ 0⤋
The two catagories you're given are insufficent in an accounting setting. It has to be listed as a loan to officer.
2007-10-16 13:06:58 · answer #3 · answered by Lex 7 · 0⤊ 0⤋
The second choice.
2007-10-16 13:07:29 · answer #4 · answered by curtisports2 7 · 0⤊ 0⤋
loan to shareholders
2007-10-16 13:01:24 · answer #5 · answered by Fabio G 3 · 0⤊ 1⤋