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February 7, 2020
Question

Can i make a journal entry to shareholder loan for owners expenses?How?

  • February 7, 2020
  • 1 reply
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1 reply

February 7, 2020

Hi there, 

 

I can see the importance of being able to record a shareholder loan for your owners expenses. I'd be happy to steer you in the right direction.

 

QuickBooks Online makes it easy to record a shareholder loan, here's how: 

 

To record a loan from the officer or owner of the company, you must set up a liability account for the loan and create a journal entry to record the loan, and then record all payments for the loan.

 

The steps in the following sections provide guidance for this process.

 

Step 1: Set up a liability account

 

The first step in recording a loan from a company officer or owner is to set up a liability account for the loan.

 

Depending on the repayment time frame, the Account Type can be Other Current Liabilities (to be paid in full in one year) or Long Term Liabilities (to be repaid over more than one year).

To set up the account:

  1. Go to Settings ⚙️.
  2. Select Chart of Accounts.
  3. Select New.
  4. In the Account dialog, select either Other Current Liabilities or Long Term Liabilities from the Account Type drop-down list, depending on the type of loan and its repayment time frame.
  5. In the Detail Type drop-down list, select either Other Current Liabilities or Long Term Liabilities.
  6. Enter a Name for the account.For example, Loan from Officer/Owner.
  7. Leave the Unpaid Balance field blank.
  8. Select Save and Close.

The liability account is created. The next step is to create a journal entry for the loan.

 

To find out more about how to create a journal entry to record the loan, check out this helpful article here