On 7/11/2017 12:57 AM, DaveC49 wrote:
Hi,
The most direct transaction to record this is:
Debit
Credit
Liability:DirectorsBusiness Expenses xxxx
Asset:LoansToDirector xxxx.
The most important thing is to annotate the transaction description field to
indicate that a reimbursement of the expenses incurred by the director has
been offset against the loan to the director.
Going to jump in here with a consideration that has not been expressed.
The purpose of accounting is to be able to supply necessary information.
I do NOT know the reporting requirements of this situation for business,
but do know, since I keep books for non-profits, that this is a
situation (loans to a director) that I would have special reporting to
do << I don't know exactly what, since those sections of the filings I
get to leave blank except for a "none" >>
Get professional advice. Not about HOW to enter in gnucash but the WHAT
of the necessary entries.
In general, loans, payments, etc. involving "insiders" might have to be
treated differently than with outsiders. I agree that the "one step"
transaction as described << expense against loan >> handles the overall
situation but you might want two step for a cleared trail >>
Michael D Novack
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