Account is Asset if monies owed to SH and Equity if company owes SH money

[sailorca]

Hello,

Off the top I just want to let you guys know I am self taught with regard to
accounting principals.  So what I know about accounting is simply what
appears to work consistently :)

I am in the process of filing my cooperate taxes.  My company (CTC) has a
corporate shareholder (DACI) that owes money to CTC and another (REFI) that
CTC owes money.  Both of these loans are long term. 

Currently I have two accounts under Equity representing these Shareholder
Loans and the books balance.  However, my understanding is if the company is
owed money this should properly go under Assets. So the DACI Shareholder
Loan would appear under Assets (owed from shareholder) and the REFI
Shareholder Loan goes under Equity (owed to shareholder).

I would prefer to do transactions for a given shareholder under one account
and have it appear under Assets if the shareholder owes the company and
under Equity if the company owes the shareholder.   Is there a way to link
the accounts this way?  Or maybe a formula moves the account from Asset to
Equity depending on balance when the Balance Sheet report is run?

I hope what I am asking is clear.  Feel free to question my understanding of
Shareholder Loans.

Thanks for you time,
Donald



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