Loan from company to shareholder

You will create an asset account: Loan to shareholder

Then create a journal entry:

DR Loan to shareholder 100

 CR Bank 100

Thanks Prachi,

So basically, I will create a other current asset account, right? Can I create also a sub-account which the name of the shareholder to identify the shareholder who owes the money to the company? 

I do not like sub-accounts that much unless it is really needed :)

You can just create an asset account with a name like this: Loan to Nieves

Hi Nieves,

It's great to see you in Community!  When it comes to recording a transfer of funds from your bank account for the purpose of an interest-free loan to a shareholder, I'd encourage you to reach out to an Accountant.  They can provide you with the best course of action for these types of transactions to ensure they're applied correctly

If you don't have an Accountant, we can help you find one here.  Enter your postal code to find an Accountant in your area.

Please feel free to reach back out if you have any other questions or concerns.  We'd be happy to assist!