Bank Loan for initial company setup

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ngatur
1 Post
Cover User

Bank Loan for initial company setup

It's been a long while since I've had to do this, and mainly done H/P type loan setups anyway.

 

We have taken a loan from the bank to purchase a new company. I'm unsure how to enter this into Essentials and am getting myself completely confused.

 

I can creat the liability account easily, but am stuck on how I enter the initial transaction (and fees) which will then be the amount paid down each time a direct debit payment is made each month.

 

HELP!

1 REPLY
Ultimate Partner ronatbas
3,933 Posts
Ultimate Partner
Australia

Re: Bank Loan for initial company setup

@ngatur

 

I am not altogether clear on where the money flow is, or the structure of the both entities. Is  company 1 going to be the owner of company 2 , or, are you and your fellow directors recorded as the owners? You need to speak to your accountant and be very clear on the structures. It may well be that the loan should appear on the accounts of company 1 as Loan to company 2 (with an opposite account on company 2). Further to this it may be that the loan is actually a loan from company 1 to the directors to enable them to purchase company 2 and it will be your accountant who has to make the call on this one.

Of course all of the above is going to impact on your file in different ways.

Ron B
BAS Group
03 95588477

info@basgroup.com.au
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