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

[Stephen M. Butler]

On 12/9/21 19:38, Stan Brown wrote:
> 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.
>
1.  Lending money.
2.  Paying a Dividend.
3.  Reimbursement for expense paid by individual.
4.  Reduction of equity share (stock buy-back).

All of those could be "money out of the company into my personal bank 
account".

-- 
Stephen M Butler, PMP, PSM
Stephen.M.Butler51 at gmail.com
kg7je at arrl.net
253-350-0166
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