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How to record loan receivable the owner of our company

If the owner of the company borrow money for his own company, how to record this loan receivable from him. What I did, was set up the owner as a customer and entered the opening balance. But this loan receivable always appear in my AR aging report, which I don't want it. How can I separate the notes/ loan receivable from AR receivable from sales? Thanks!

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Best answer 12-10-2018

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Established Community Backer ***

Then the money out is entered as Other Asset = Loan to Sh...

Then the money out is entered as Other Asset = Loan to Shareholder. You don't use Sales for this. The account is not AR (a different asset) but Note Receivable or Loan to Shareholder as an Asset. There are lots of different Asset type activities, and only Sales are AR.

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Established Community Backer ***

Then the money out is entered as Other Asset = Loan to Sh...

Then the money out is entered as Other Asset = Loan to Shareholder. You don't use Sales for this. The account is not AR (a different asset) but Note Receivable or Loan to Shareholder as an Asset. There are lots of different Asset type activities, and only Sales are AR.

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Thank you very much for the help!

Thank you very much for the help!
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Just so I'm clear....A LLC, single membered shareholder,...

Just so I'm clear....A LLC, single membered shareholder, can receive a loan from a sole proprietor?
Established Community Backer ***

"Just so I'm clear....A LLC, single membered shareholder,...

"Just so I'm clear....A LLC, single membered shareholder, can receive a loan from a sole proprietor?"

If this is two different people, yes.

If this is the Same person, no. You cannot be in debt to/from yourself, if the tax form filed is Sched C. Sched C = you are your Business Tax entity are the Same entity. Sched C is part of your 1040.

If you file taxes for the business as 1065, 1120S or 1120, your Entity is a Separate Entity.


Established Community Backer ***

This has nothing to do with Customers or Sales. The first...

This has nothing to do with Customers or Sales. The first thing is, you need to tell us the Entity type of this business. A Sole Proprietorship cannot have a loan to or from the Owner; that is all just Equity activities.

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The entity is corporation.

The entity is corporation.
Experienced Member

Re: Then the money out is entered as Other Asset = Loan to Sh...

How would I set-up this account in Chart of Accounts?

 

QuickBooks Team

Re: Then the money out is entered as Other Asset = Loan to Sh...

Hi there, @newbutlearning.

 

You can set up this account as Other Current Liability or Long Term Liability in your chart of accounts. This way, it will not show in your Account receivable aging report. I'll be glad to guide you on how.

  1. In your QuickBooks Desktop (QBDT) account, go to the Lists menu.
  2. Select Chart of Accounts.
  3. Click New in the Account drop-down arrow.
  4. Select Other Account Type
  5. Choose either Other Current Liability or Long Term Liability and click Continue.
  6. Fill in the needed information.
  7. Once done, click Save & Close.

For more detailed steps and information on how to record loans in your QBDT account, feel free to check this article for reference: Manually Track Loans.

 

Also, I'll recommend reaching out to your accountant. This way, you'll be guided further on recording loan payments.

 

 I'm also adding this article in case you want to learn how to combine multiple transactions into a single record in your QuickBooks Desktop account: Record and make Bank Deposits in QuickBooks Desktop.

 

Don't hesitate to reach out to us if you have other concerns or queries. I'll be around to help. 

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