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    bberna's Avatar
    bberna Posts: 5, Reputation: 1
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    #1

    Mar 10, 2008, 05:23 PM
    Loan or capital?
    Hi,

    I have just started to work in a new company. I have a couple questions..
    1)Company was set up in 2007. There are many expense invoices for 2007. I will write up them. If the owner paid them will I record loans from officer(liability account) or something else?

    2) when I check the first company s bank statement. Owner deposits to money( own money) to bank.After that paid some checks (for expense) from this account.. My questions is is this money loan from officer or some type of capital? If it is capital how should I record?


    Thank you for your help
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
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    #2

    Mar 12, 2008, 05:27 PM
    When the owner pays bills and not get reimbursed, yes, these are considered owner's loan to the company.

    After you confirm with the owner, if they are capital contributions, then you credit that owner's capital account.
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