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

[Michael Tsang]

On Friday 01 March 2013 23:02:49 sailorca wrote:
> 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
> 

What do you mean by "shareholders loans" actually?