[miva]

Background: it's a partnership business. We don't have visa card for the company yet. So owners have to pay from their own pockets when we run out of the cash. I have set up owner loan payable to each owner under short term Liability. So whenever we receive our AR , owners will get reimbursed.

Questions:: now company also made something for the owners. Say company paid materials for owners home renovation. Also paid employees for the time worked in owners home.

How should I record that to offset owner loan payable:

I'm thinking to record the material exp and pay roll exp as normal way.

Like DR material exp ( we don't have inventory) / payroll exp
Cr Bank

Now what should I do to offset owner's loan payable account. I'm stuck . Please give me a hand.

[MaggieMouse]

If the owners don't need to pay back the expenses, and yes just do it your way.

There are may be some tax issues regarding to the deductability of these expenses.