[spurschic1]

Hi,

I have an amount paid out of the company for a personal loan taken out for tax due. How do I account for it in the trial balance?

Thanks

[morgaine300]

You don't account for transactions in a trial balance. You account for them by making an entry, then letting the accounts all balance themselves, and the trial balance will come off those account balances.

It's credited out of cash. The debit depends -- if you're actually expecting to get this back from whomever it was loaned to, then it's a receivable. If it's going to get paid back within a year, then it's current. If it's going to be longer than that, then it would go under "other non-current assets." As a side note, the fact that it is for tax is irrelevant -- it's a loan, period.