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AprylWhite 12
Feb 3, 2022 12:22 AM UTC
Question

Transferring a loan

I have a client that has two QB desktop companies. One was as a sole proprietor and the other as an scorp. His SP account has a loan that he wants to transfer to the scorp company file. What are the entries for the GL to successfully zero the loan on the SP account and create the loan balance in the scorp account?

1 reply

Rustler
Rustler
Feb 5, 2022 12:57 PM UTC

Has the lender approved this transfer? They need to.
Getting the loan out of the SP account is relatively easy. But since the other company is an s-corp that poses problems. The s-corp does no have equity account accounts that can be used in the same way as you can in an SP business. Since this is a loan, what will the s-corp use the money for?

 

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