Re: Loan using personal Pledged Asset Line acct.--- how to manage loan transactions in QB?
First, money needs to flow from the personal account to the business account. The money should have been recorded as equity because it was personal money being put into the business. Most business owners call this contributed capital or an equity contribution. This means the business does not owe anything, the owner just made an investment in the business. The business owner should consult with their personal Accountant for advice to correct the accounting.