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acmesource
February 12, 2019
Question

How to record business expense paid by owner as Shareholder loan?

  • February 12, 2019
  • 1 reply
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I own a business(S corporation) & I have some business expense paid from my personal account, I want to record the expense as Shareholder Loan & I'll pay myself back later, how do I record this in Quickbooks?

Please help, thanks

1 reply

Rustler
Rustler
February 13, 2019

create a liability account called something like shareholder loan - [name]

 

use an expense transaction

line one, the expense account for what you are paying for and the amount

line two, the shareholder loan account and the same amount as a negative number

save the zero dollar transaction

 

later pay the loan

    qbteachmt
    qbteachmt
    February 13, 2019

    When you want to track the Actual Payee, it is much easier to make bank account and name it Petty Cash. Now you use Banking menu > Write Check, from the Petty Cash Account, to enter the purchase details individually by date, names, items, amounts, etc. At the end of this Date of spending, this account is negative. You use Banking menu > Make Deposit, and there is no Name to enter here, and the "from" account is Shareholder loan, for that amount to bring the Petty Cash Bank back to 0 for this date. Then, reconcile it, using ending balance of 0. That reflects you made your entries, you confirmed the offset to Loan, and you are verified to 0.

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