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Daisy24
March 1, 2024
Question

Shareholder Loan(Other Current Liability)has a balance, if I fic

  • March 1, 2024
  • 1 reply
  • 0 views

I need help.  I am not an accountant and I have Quickbooks Desktop for Mac.  We moved this year and started a new Corporation, but same type of business.  Unfortunately I did not think about getting a new credit card to use for the new business.  In February I made the credit card payment from the old corporations checking account, but downloaded all of January transactions into the new business as they were the new business' expenses.  I reconciled both those accounts.  Later I transferred money from the new business to reimburse that amount.  The Reimbursement amount now shows as a balance in my "Shareholder Loan" (other current liability category").  How do I remove this balance as that amount has already been assigned to my checking and my credit card account in the other transactions and putting them in my Shareholder loan will prevent them from reconciling?

 

1 reply

Rainflurry
Rainflurry
March 1, 2024

@Daisy24 

 

"The Reimbursement amount now shows as a balance in my "Shareholder Loan" (other current liability category"). How do I remove this balance as that amount has already been assigned to my checking and my credit card account in the other transactions and putting them in my Shareholder loan will prevent them from reconciling?"

 

I'm confused as to why you have a balance in Shareholder loan.  Is that the account you assigned to the reimbursement payment?  Is it a negative balance?  A payment made and assigned to a liability account will create a negative balance.  Do you have an offsetting balance in your cc liability in New Corp.?  

 

The payment made in February from Old Corp. should be assigned to an asset account called 'Due from New Corp.' or something similar.  The charges imported into New Corp. should have created a balance due on the credit card.  When you issued the payment for the credit card balance, you would just issue payment to Old Corp. and assign that payment to the credit card liability account.  Then, assign the deposit received in Old Corp. to the 'Due from New Corp.' asset account and you should be all set.  

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Carneil_C
March 1, 2024

Welcome to the Community, @Daisy24.

 

We'd love to help you achieve your goal, but I just need some more information to help me get on the same page. 

 

Would you mind telling me more about it? Like what Rainflurry asked above, Is the shareholder loan the account you've assigned the reimbursement payment? How do you create the transaction that creates the balance, and how do you record the Credit card and Checking transactions? This way, I can provide you with an accurate resolution.

 

I appreciate any details you can provide. I’m looking forward to your reply. Have a great rest of the day. 

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Daisy24Author
March 2, 2024

Is the shareholder loan the account you've assigned the reimbursement payment?

Yes. 

 

How do you create the transaction that creates the balance, and how do you record the Credit card and Checking transactions?

 

I made payment out of Old Business checking and categorized it has my "credit card account" so it puts the payment in my credit card register.  Then in my Credit card register it categorizes it as my "checking" account. so they balance each other out with no regard to the Loan repayment from my New Corporation as a positive balance/credit.

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