26-11-2010 12:33 PM
how do you account for a loan to another company?
i know how to setup a loan to a bank as a liability, but i am not sure if it is the same procedure if setting up a loan to a company.
does anyone know what the best approach is?
12-12-2010 12:39 PM
The loan is an Asset as you are owed the money. So set up a new account in the Assets section. Whether it is Short or Long Term, depends on the details. If you have advanced the outside business the loan in cash, you simply debit the new Loan Account from your Cash Payments.
Need help with your MYOB product or service?Find out more
News, views and ideas for your businessFind out more
Courses and materials
designed to help you make
the most of your software.