[GNC] Directors loan - do I need an expense account?

Dr. David Kirkby drkirkby at kirkbymicrowave.co.uk
Thu Dec 9 10:23:52 EST 2021


On Thu, 9 Dec 2021 at 13:57, Stan Brown <the_stan_brown at fastmail.fm> wrote:

> Reminder: The normal thing is to reply to the GnuCash list, not to
> individual people who post.
>
> On 2021-12-08 15:49, Dr. David Kirkby wrote:
> > Liabilities -> Accounts Payable -> Director Loan.
>
> It's not a liability to the company. It will become an asset (to the
> company) when it is paid out, and the asset will be extinguished when
> the loan is repaid.
>

I can't understand why you say it's not a liability, when the company owes
money to someone else? How is it any different to owing money on a credit
card for example?

Stan Brown
>

Dave


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