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shau's avatar
shau
Experienced Cover User
6 years ago
Solved

Receiving money that is not income: credit note?

I received $2000 from my mum intended to support my business, but I would not regard this as not income, but rather, an interest-free loan or potentially even a gift if the business fails and I can't...
  • IanChait's avatar
    IanChait
    5 years ago

    Hi shau 

     

    The deposit does not involve GST, so the code would be N-T. 

     

    If you are a Sole Trader, you will have an Equity Account 3-XXXX called Owners Contribution or something similar. Use this account.

     

    If you operate via a Company or Trust, you should have a Liability Account 2-XXXX called Loan - (Your Name). Record the deposit to that account.