Hi Ba.milne, You can record this in more than one way. Are you wanting to show this as equity put into the business as start-up money or are you wanting to show this as a liability that would be paid back in 12 months or liability over a longer period? Generally, if it is a director's loan to the business it is set up as a liability as it is money loaned to the business. You would need to set up a chart of account for the loan and then record the money loaned to the business..
Below is how to set up the chart of account. 1. Go to accounting>chart of accounts>new>liability(paying back in 12 months) or non-current liability(paying back over longer than 12 months) 2. Select the detail type nearest to situation 3. In name write for example directors loan You can then record then in the + symbol record the money in by using the bank deposit section. In the top select the bank account paid into, date, etc, and in add funds to this deposit select the liability account that you have set up in the above steps and save and close. If you need more help on how to record a bank deposit see this link. When it comes to paying it back you can expense the liability account which will reduce the liability and the bank account by the amount paid back. If you want to show as equity it would be a similar process creating an equity account and then adding the money to that account either in a bank deposit or journal entry. We would recommend speaking to an accountant to confirm they are happy with this as we are not trained accountants here.
