Re: how to balance a loan to a director against expenses made by him?
On 7/11/2017 12:57 AM, DaveC49 wrote: Hi, The most direct transaction to record this is: Debit Credit Liability:DirectorsBusiness Expenses Asset:LoansToDirector . 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 ___ gnucash-user mailing list gnucash-user@gnucash.org https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: how to balance a loan to a director against expenses made by him?
Hi, The most direct transaction to record this is: Debit Credit Liability:DirectorsBusiness Expenses Asset:LoansToDirector . 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. To record the loan to the director, if you had a need to record the original value of the loan as well as repayment of the loan and the outstanding balance you could use a header account with two child accounts as follows Asset:LoanToDirectorBalance Asset:LoanToDirector:InitialLoanValue Asset:LoanToDirector:LoanRepayments The InitialLoanValue sub account which is debited by the amount of the loan when the loan is first made and a second child account which is credited by the amount of the repayments/reimbursements of expenses incurred as in the transaction shown above. If the loan had interest payments one could use a third child account to record the interest payable on the loan (a debit split to this account would record the interest with a corresponding credit split to an Income:InterestonLoans account). The child accounts as described above would all sum into the header account, which then records the current balance of the loan. Which you would choose really depends upon the level of detail you are required to report to the company and external reporting requirements and the level of detail you need for your internal management of the loan. David Cousens - David Cousens -- View this message in context: http://gnucash.1415818.n4.nabble.com/how-to-balance-a-loan-to-a-director-against-expenses-made-by-him-tp4692636p4692639.html Sent from the GnuCash - User mailing list archive at Nabble.com. ___ gnucash-user mailing list gnucash-user@gnucash.org https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
