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    VIDAJB's Avatar
    VIDAJB Posts: 1, Reputation: 1
    New Member

    Feb 22, 2008, 04:21 PM
    Expensing loan proceeds
    Have a line of credit for a small business- have brought in the cash into the checking account and recorded the draw amount under liability on the balance sheet. Client wants the P & L to reflect a reduction in the expenses. I cannot figure out the other side of the equasion if I credit expenses what do I debit on the P & L?:confused:
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member

    Feb 22, 2008, 08:04 PM
    What reduction in expenses? The client borrowed money. The only expense involved would be interest when it's paid, or accrued at period end, and it wouldn't be a reduction in expenses, but an increase. Tell the client you can't do that because it's incorrect.

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