I am a treasurer in a design consulting firm.I have prepared a classified balance sheet dated November 07,2009 that will be submitted to the bank along with loan application.

In the current assets section I reported a 75000 receivable from the president of our firm as a trade account receivable.The president borrowed the 75000 in November 2007 for a down payment on a new home.He has orally assured me that he will pay of the account receivable within the next year.

Is it acceptable for me to prepare the balance sheet in the manner listed above. If not please explain how and why it should be done different.


Thanks

The 75000 should be reported in due from employees section or other debit balances but not trade accounts receivable. Because trade receivables arise from the sale of the companys' products and services. The 75000 is a like a loan to the president.