Re: business start up loans and costs
You may want to check with your tax advisor as different countries have different regulations as do different types of business entities (ie, sole proprietorship, corps, etc).
But as a sole proprietorship, I believe you could set it all up under Owners Equity and the appropriate expense accounts. For example, if you have spent $200 on advertising and $300 on office equipment using your personal account, I would record it as:
Debit:
Advertising $200
Office Equipment $300
Credit:
Owner Equity-Contributions $500
When you start to make money and have extra cash you can write yourself a check for the $500 and use an Owner's Equity -Draw account to record the repayment to yourself, which will offset the original Contribution to the business.
For the money you contributed to the business, if you are loaning it to the business and have loan agreement with the business on record, with repayment terms, interest rate etc spelled out, I would record it as a Note (Loan) Payable-Officer (Owner). However, you could also just record it as a Owner's Equity-Contribution and repay yourself with a Owner's Equity-Draw when the time is correct.
I hope I was able to explain this clearly.
Good Luck!
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Angie
Blue Water Business Services
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