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-   -   Company Loans to staff (https://www.askmehelpdesk.com/showthread.php?t=115221)

  • Jul 31, 2007, 12:39 PM
    zandee
    Company Loans to staff
    If a company loans money to it's employees what is the correct entry on the company books?

    Thanks
  • Jul 31, 2007, 04:46 PM
    CaptainForest
    Dr. AR/Loan Outstanding, whatever
    Cr. Cash
  • Jul 31, 2007, 07:25 PM
    bhet
    Dr. Vales
    Cr. Cash
  • Aug 1, 2007, 11:37 PM
    conroypi
    Quote:
    Originally Posted by CaptainForest
    Dr. AR/Loan Outstanding, whatever
    Cr. Cash

    Captain Forest is correct. To make it easier to separate between employee loans and customer/client receivables, I usually set up a current asset account called EE loan. It functions like an accounts receivable account.

    Dr EE Loan
    Cr Cash

    Hope this helps.

    Adina

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