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    chellewatson's Avatar
    chellewatson Posts: 1, Reputation: 1
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    #1

    Oct 28, 2008, 10:29 AM
    Financial Statement
    My questions is:

    If an Accountant borrows money from a company and does not put the amount on the books or the balance sheet, what kind of account should the loan be recorded as later on?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 29, 2008, 02:04 PM

    If the person is borrowing money from the company he/she works for then the company would record the transaction as follows:

    Debit Accounts Receivable - (Name of Person who borrowed the money) for the amount
    Credit Cash for the amount

    If the person is borrowing money from another company on behalf of his company, then the transaction is posted as follows:

    Debit Cash for the Amount
    Credit Accounts Payable - (The company that lended the money) for the amount.

    If the person borrowed money from another company and it is a personal loan then his/her company would not record the transaction.
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