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Kristin00
Level 1

The shareholder lent money to his company and in 3 days the company return that money back. What is the procedure to record it?

The shareholder lent money to his company and in 3 days the company return that money back. What is the procedure to record it? 

Thank you, 

1 Comment 1
john-pero
Community Champion

The shareholder lent money to his company and in 3 days the company return that money back. What is the procedure to record it?

Record the deposit to company banking as a company liability, shareholder loan.

Record the payback as cash out (check or otherwise) against the loan.

 

Even though it is only a few days, it might not always be, and shareholder loans must be recorded.

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