Shareholder Loan(Other Current Liability)has a balance, if I fic

@Daisy24 

"The Reimbursement amount now shows as a balance in my "Shareholder Loan" (other current liability category"). How do I remove this balance as that amount has already been assigned to my checking and my credit card account in the other transactions and putting them in my Shareholder loan will prevent them from reconciling?"

I'm confused as to why you have a balance in Shareholder loan.  Is that the account you assigned to the reimbursement payment?  Is it a negative balance?  A payment made and assigned to a liability account will create a negative balance.  Do you have an offsetting balance in your cc liability in New Corp.?  

The payment made in February from Old Corp. should be assigned to an asset account called 'Due from New Corp.' or something similar.  The charges imported into New Corp. should have created a balance due on the credit card.  When you issued the payment for the credit card balance, you would just issue payment to Old Corp. and assign that payment to the credit card liability account.  Then, assign the deposit received in Old Corp. to the 'Due from New Corp.' asset account and you should be all set.  

Welcome to the Community, @Daisy24.

We'd love to help you achieve your goal, but I just need some more information to help me get on the same page. 

Would you mind telling me more about it? Like what Rainflurry asked above, Is the shareholder loan the account you've assigned the reimbursement payment? How do you create the transaction that creates the balance, and how do you record the Credit card and Checking transactions? This way, I can provide you with an accurate resolution.

I appreciate any details you can provide. I’m looking forward to your reply. Have a great rest of the day. 

Thank you for your reply.

Yes, correct. Not a negative balance but a credit from the deposit I made.  The Shareholder balance is the amount that I paid from the new business to the old to reimburse for the credit card balance.  I created the category because later I took a loan to the new business until our cash flow started in the new business.

Do you have an offsetting balance in your cc liability in New Corp.? 

I am not sure what that question means.  In the new business I created a journal entry of the existing balance.  I then created a "Loan from Old Business name"(other current liability) and it has a 0 balance now because it included the credit card balance and my reimbursement of it. I read online to do it this way but maybe it was not correct?

I think I understand what you told me to do.  The problem is I paid the credit card balance in February 2023 from my Old Corporation and reimbursed it from my New Corp in December 2023 so if I changed the credit card payment category from "Checking" to "Due from New Corp" then my checking account would no longer reconcile.  I hope that makes sense.

Is the shareholder loan the account you've assigned the reimbursement payment?

Yes. 

How do you create the transaction that creates the balance, and how do you record the Credit card and Checking transactions?

I made payment out of Old Business checking and categorized it has my "credit card account" so it puts the payment in my credit card register.  Then in my Credit card register it categorizes it as my "checking" account. so they balance each other out with no regard to the Loan repayment from my New Corporation as a positive balance/credit.

@Daisy24 

OK, so it sounds like everything is recorded properly in New Corp., correct? 

Did you assign the Feb. payment to your credit card account in Old Corp.?  The Dec. reimbursement deposit should have been assigned to the same account that was assigned to the payment made in Feb.  Those would have offset.  But, since you have a balance in Shareholder Loan, the payment and deposit were made from/to different accounts.  If the Feb. payment was assigned to your credit card account, then you have offsetting amount in the Shareholder Loan and credit card liability accounts.  They can be closed out with a journal entry: debit Shareholder Loan, credit the credit card liability account.  That will decrease the balance in Shareholder Loan and increase the credit card liability account by the amount of the Feb. payment.  If you assigned the Feb. payment to a different account, credit that account on the journal entry and you should be all set.      

Yes everything is recorded correctly in New Corp.

In the old Corp this is what and how I have recorded in the 3 different accounts:

Each transaction is posted this way:

1.CHECKING Account
Type of account:Bank

Transaction 1:

Line 1 2/1/23 "Chase" (payee) 1000.00 (payment)
Line 2 "Reserve" (Nickname of credit card Account)

Transaction 2:

Line 1 12/31/23 "Online Transfer" (payee) 1000.00 (deposit)
Line 2 "Shareholder Loan" (Account)

RESERVE Account (credit card):
Type of Account:Credit Card

Transaction 1:

Line 1 2/1/23 "Chase" 1000.00 (payment)
Line 2 "Checking"(Account)

SHAREHOLDER LOAN Account:
Type of Account: Other Current Liability

Transaction 1:

Line 1 12/31/23 "Online Transfer" 1000.00 (increase)
Line 2 "Checking" (Account)

"debit Shareholder Loan, credit the credit card liability account"

I understand what you are saying, but what account would I use for the "credit in the credit card liability" journal entry? You said "credit card liability" but not sure which one that would be based on what I included above?

Thank you so much for your replies. I hope this helps.

@Daisy24 

It appears you have $1,000 overstated balance in Shareholder Loan and a $1,000 understated balance in the Reserve credit card account because the Feb. payment was assigned to the Reserve credit card account and the Dec. deposit was assigned to the Shareholder Loan account.  They Feb. payment and Dec. deposit should have been assigned to the same account.  Does that match what you're seeing?  To clear this up without messing with the bank reconciliation, create a journal entry: debit Shareholder Loan for $1,000 and credit the Reserve credit card for $1,000.  That will zero out the Shareholder Loan account and increase the Reserve credit card by the understated amount of $1,000.  

Yes that would make sense.  So is that what I want is to increase the Reserve credit card by the understated amount?  I think doing that journal entry will give my Reserve account a balance of $1000 instead of a 0 balance.  I am so used to Reconciling every account that I am having trouble wrapping my brain around this so I apologize if this is a dumb question.

@Daisy24 

I think doing that journal entry will give my Reserve account a balance of $1000 instead of a 0 balance.

Yes, it will.  Every entry in QB (this is double-entry accounting) affects two accounts.  So, if you have an error of $1,000 in Shareholder Loan, you MUST have an equal and offsetting $1,000 entry somewhere else.  The fact that the Feb. payment was made from the Reserve credit card means that reduced the cc balance by $1,000.  But, you should not have had $1,000 cc balance to pay down because you recorded the cc charges in New Corp., correct?  If the Reserve cc account is $0, then you need to see why the $1,000 payment didn't create an overpayment of $1,000.  Does that make sense?

Yes I understand.  I just went and looked at this again.  I downloaded  transactions until 1/8 and paid for that under old corp which is correct so that payment is not a Shareholder Loan.  It looks like my mistake is in the New Corporation when I created the credit card account there and that is why I thought I had to pay the old Corporation the 1000.  I created a Journal entry and downloaded all the transactions from 1/9 the cutoff date from the old corporation.  The issue is the 1000 payment was also downloaded and I put it in account "Loan from Old Corporation".  Then I saw that balance and paid it creating this confusion. Oh boy.  So I think now I have to move that money back to new corporation and fix this but now sure how.  If you can help me I would so appreciate it.  I feel like I am back in my high school accounting class and I am so sorry for putting you through this.  I sure appreciate your patience.