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View Full Version : How to create a line of credit account


bellevueboy
03-21-2004, 05:16 PM
Do I create a new chart of accounts as a other liability account and do I start with a negative balance.

Jim Dale
03-21-2004, 05:34 PM
yes. i.e. 22300 is line of credit. balance is put in as -10000 or 10000 in the credit side. type is one of the liabilities, usually current.

bellevueboy
03-21-2004, 05:52 PM
I start the opening balance in the 22300 account with a negative balance as the line of credit, but what if I already started using the line in 2003. How do I adjust it to reflect what has been used>

Jim Dale
03-21-2004, 05:55 PM
Are you setting up p'tree for the first time? If not you can record the transaction in the proper period. Is the other side being recorded? (such as a deposit to cash)