sole proprietorship with respect to my PERSONAL books?

[Colin Law]

On 13 February 2013 21:13, Michael Hendry <hendry.michael at gmail.com> wrote:
> ...
> Like Mark Phillips, I am not an accountant, but I would advise setting up a "Loan to Business" or similar account as one of your Current Assets. Assuming the business is successful, the money will come back to your bank account and be posted as money coming into the "Loan to Business" account, which eventually reverts to zero. If the unthinkable happens, and the business goes down, you'll have to revalue this loan to zero. This could be done by setting up an Expense account called "Bad Debt Writeoff" - I'm busking it here - you might need to get a proper accountant to advise!
>
> I use this technique to deal with "Bank of Mum and Dad" loans to my offspring, who pay us back as cash becomes available.

I do this too, but I think I need to report a bug.  Whatever I do the
money always seems to go the same direction.

Colin