I received money as a loan from a family member as seed funding. I initially deposited it into my personal account and used a portion before opening my business account. I then transferred the remaining balance into the business account once my business account was opened. How do I account for the funds spent while in my personal account as a business? I don't want to add my personal account into QB and I'm not sure if I can add the full amount as a deposit into my business account because it does not reflect that on the bank statement. It's already recorded as a loan from the family member but I don't know how to record the deposit of full funds.
Here's what I've done:
- All of the funds that were used from my personal account are recorded as "Other current liability / Loan from Shareholder"
- I've used the "Opening Balance Equity" account to initially record the full amount loaned to me while also posting this full amount as a "Long term liability" to the person who loaned it to me.
- I've transferred the amount already previously spent from "Opening Balance Equity" to "Other current liability / Loan from Shareholder" paying off the loan
- I've transferred the remaining balance from "Opening Balance Equity" to the business checking account bringing the "Opening Balance Equity" to a zero balance.
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