Transfer between personal & business accounting question

[Maf. King]

On Thu 26 November 15 08:01:43 Matt Kowske wrote:
> This is a general accounting question on how to properly enter a
> transaction like this.
> 
> I have two gnucash files I maintain. One for personal and one for an
> LLC. The LLC is at a point where it needs more funds to purchase a
> property, so owners are transferring some of their personal money into
> the business account to make a down payment with.
> 
> On the business side I will enter this as Equity:Member A:Contributions,
> right? Or should this be a liability? On the personal side how should I
> account for this? Let's say I'm putting 5,000 of my personal money into
> the business. In my personal GnuCash file would this be Asset:Business
> Equity or Equity:Business?


Personally, when I have loaned my business money, I have treated it on both 
sides as a loan, not touching equity.

So on my side GC has something like Assets:LoanToCompany, and a matching 
Liability on the buisness books side.

I will note that the loans made have been (intended to be) short-term and not 
rolling over a tax period.  UK based and IANAA.

HTH,
Maf.