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

Dr. David Kirkby drkirkby at kirkbymicrowave.co.uk
Thu Dec 9 20:29:08 EST 2021


On Thu, 9 Dec 2021 at 22:48, Michael or Penny Novack <
stepbystepfarm at comcast.net> wrote:

> On 12/9/2021 2:04 PM, Gyle McCollam wrote:
>
> Repeat, get professional advice or at least learn the accounting
> yourself. This is an accounting question, not a gnucash question.
>
> Michael D Novack
>

I believe I was overthinking this - making it more complex than it needs to
be. To  be honest, I'm using GnuCash as a bookkeeping tool, not accountancy.*
Exactly how I record the information is not important, as long as my
accountant can understand what I've done. *

Maybe it's best if I just set up an expense account of  "director loan"
with the appropriate opening balance. Then at the end of the accounting
period, he will look at the balance, and add it to the other liabilities he
calculates. As long as my accountant can see what I've done, that's good
enough.

I have in the past used a spreadsheet where I record
* Expenses
* Income
* Bank account.
amongst other things.

The problem I've found is that when the expenses is subtracted from the
income, it does not agree with the change in the bank account due to
errors. A double-entry bookkeeping system should reduce the chance of
errors.

Dave


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