Hello,
I am a start up sole trader and have provided $100K capital to start the business. I made a number of purchases from my personal account amounting to approximately $70K. I have now deposited the balance ($30K) into my business account.
How do I set up the "loan" amount in myob and the business bank account?
How do I account for the purchases?
Thanks,
Dion
Hi dio4672
Thanks for your post. As there are different requirements for different business set ups I would recommend checking with your accountant on the type of account you need to allocate the loan amount to. Generally speaking, this would be either an equity account or liability account.
This Help Article, Adding, editing and deleting accounts, has instructions for creating accounts.
Once you know whether the amount needs to be allocated to an equity account or to a liability account I'll be happy to assist with how to record the applicable transactions.
Please let me know how you go.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
