Community Forum Portal/Portail du forum communautaire
We recently incorporated and have rolled existing loans from 3 shareholders into our corporate bank account. Do I set these loans up under the chart of accounts with the balance of the loans
Good morning Sandra!
This is going to be a 2 step process to get your loans set up.
1) Go to Setup > Chart of Accounts. Click on the Liability tab. In your long-term liabilities, you will want to set up a shareholder's loan account for all three shareholders. You can do this as either 3 separate detail accounts, or a single primary account with three sub-accounts. This all depends on how you want the structure to look. But, it behaves in the same manner. The most important part is that each shareholder gets their own shareholder's loan account.
2) Once the accounts are setup (and, assuming the corporate bank account has been set up), you can then go into the Transaction Entry screen, and enter the deposits to the bank account that create the balance in the shareholder's loan accounts. Set up the deposit, enter the date/reference/description/total. When you get to the line type, use L+, and select the appropriate shareholder's loan account.
If three deposits were done, then it is three transactions, with the L+ going to the appropriate shareholder at that time. If only one deposit was done, then you will have 3 L+ lines to deal with all three shareholders. This accomplishes increasing the bank account, and setting up the loans to your shareholders.
I hope this helps!