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Company A pays company B's bill from funds loaned to A from B?

Multiple companies under same ownership. Company B is dormant, so bank account was closed and all funds transferred to company A bank account, as a loan. Now company B has a $250 unexpected bill and no funds. Can company A pay the bill from the loaned funds, without having to record various transactions in both A and B? 

Best answer 05-21-2019 03:26 AM

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Established Community Backer ***

Re: Company A pays company B's bill from funds loaned to A from B?

Yes, enter the payment and use the loan liability account as the expense for the payment, that will lower the balance due

3 Comments
Established Community Backer ***

Re: Company A pays company B's bill from funds loaned to A from B?

Yes, enter the payment and use the loan liability account as the expense for the payment, that will lower the balance due

Senior Explorer *

Re: Company A pays company B's bill from funds loaned to A from B?

@Rustler Thanks! Can I enter the loan liability as expense on a bill instead of directly on the payment? Not sure if that makes a difference.

Established Community Backer ***

Re: Company A pays company B's bill from funds loaned to A from B?


@sevans wrote:

@Rustler Thanks! Can I enter the loan liability as expense on a bill instead of directly on the payment? Not sure if that makes a difference.


Yes, and then use pay bills to pay it