How to handle loans

[Maf. King]

On Sunday 03 December 2006 10:47, OOzy Pal wrote:
> Dears,
>
> I am not sure if this list is proper for this question. If not I
> apologize in advance.
>
> I have borrowed some money to start my business. Where to add this
> money; under what account (Assets, Liabilities, income, expenses,
> etc)?

Hi OOzy,

IANAA, but any money "you are looking after for someone else" eg a loan to 
you, or a bill you need to pay sometime are liabilities.  
Any money which is yours, but you don't actually have (eg loans you have made, 
unpaid invoices you have written) is an asset


I would suggest something like a liabilities:start-up capital account, and 
make a transfer between there and (presumably) your checking account.

HTH,
Maf.