Complete 2002 - recording loan from shareholder

[Margie]

I'm using Peachtree Complete Accounting 2002 - how can I record a loan from a shareholder?

[dcasciato]

Most accountants would like this to be done by using a general Journal. It is sales so sould not show in regular income.

What we do in this situation is:

Debit the Cash or Checking account the loan goes into
Credit the Owner's Equity or Retained Earning Account or
better yet a long term liabiality account for the Loan with
the owners name.

Not being an accountant it will be interesting to see what others
think.

DJC

[VPV]

Debit the cash account the monies will be deposited into and credit a corresponding liabilities account beings this is a loan it is a liability.

[julieitg]

How about entering in loans that need to also have interest paid? Say I need to enter a deposit of $100,000, from a 4-year loan interest with 4% interest? I enter the amount as a receipt, coming from the loaner, from a long-term liability account. Then where does the interest go?

[SYDNEY]

INTEREST ON LOANS AND OVERDRAFTS ARE TREATED AS AN EXPENSE. YOU CAN RAISE AN ACCOUNT TO DEBIT FOR THE LOAN INTEREST (IF YOUR NEED TO MONITOR LOAN EXPENSES) AND CREDIT THE LIABILITY ACOUNT. IF REPAYMENT IS IN SLABS THEN YOU NEED TO UPDATE THE INTEREST COMPONENT PERIODICALLY TO HAVE A UPTODATE PICTURE ON YOUR LIBILITIES. THIS HAS TO DO WITH THE TERMS OF PAYMENT OF THE LOAN. REPAYMENT WILL DEBIT THE LIABILITY ACCOUNT AND CREDIT THE CHECKING OR CASH ACCOUNT: THE SOURCE FROM WHERE YOU ARE REDUCING/REPAYING THE LOAN. JOURNAL ENTRIES ARE FINE

[Wiz]

The first thing you should do is set up the lender (shareholder) as a vendor. In the purchase default put in the GL Account ID for Loans From Shareholders.

After the person is set up go into receipts and change from Customer ID to Vendor ID. Pull up the shareholder and then enter the data. The default account should be the Shareholder Loan Account. If not change it so that it reflects that account number. Put in the amount and now you should be set up.