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

[Stan Brown]

On 2021-12-09 11:04, Gyle McCollam wrote:
> If the loan is to the company, as stated in your original email, it is a liability of the company.  Stan is incorrect, but if the company makes a loan TO the director, then it would be an asset of the company and he would be correct.


But the OP said:

>... as I thought that was the closest thing to allowing money to be
>moved out of the company, into my personal bank account.

>When I tried to pay myself using GnuCash, I was expecting money to go
>out of the company bank account,into my personal account, and reduce
>the company's liability. However when I set up a bill, I could see it
>was only possible to bill this as assets or expenses - *not as a
>liabilitiy*. Does this mean I need to set up another account for
>expenses?


"money out of the company into my personal bank account" -- that seems
pretty clear to me that the company is lending the director money, not
the other way round.

-- 

Stan Brown

Tehachapi, CA, USA

https://BrownMath.com