Assets or Liabilities?

[Mike or Penny Novack]

Davey B wrote:

>Hi, just started playing with Gnucash and was wondering if funds brought 
>to a business by Directors should show as equity or liabilities and also 
>how you deal with the imbalance on the originating transaction?
>  
>
Davey,
    Questions like this aren't about GnuCash but are about law and 
accounting and any answer requires far more knowledge about ......

a) The legal structure of the business entity (a partnership, a 
corporation, etc.) and the laws of your jurisdiction.

b) Whether this inflow of money was a direct investment in the entity or 
a loan made to the entity and again, how the laws of the jurisdiction 
might apply.

    We are programmers or analysts, not accountants, financial advisors, 
or lawyers. Even if some of us might know the answer (after you supplied 
the information "a" and "b"_ it would be improper for us to answer 
without the right "credentials".

Michael