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How to record fund transfers from one owner's contribution to another owner's contribution?

HamAutos
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How to record fund transfers from one owner's contribution to another owner's contribution?

Hi Team,

 

We are 3 Directors/Shareholders for a company. We owe each other personal loans. For example, one director owes me $2,000. I want my loan of $2,000 to be taken out of his equity/owner's contribution and recorded into my equity/owner's contribution. 

 

Note: We're using MYOB Essentials.

 

Thanking you in advance,

 

 

6 REPLIES 6
Tracey_H
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Re: How to record fund transfers from one owner's contribution to another owner's contribution?

Hi @HamAutos 

 

Thanks for your post. I'd recommend speaking to your accountant about the required journals to ensure those amounts are reported correctly for tax purposes.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
Previously @bungy15

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HamAutos
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Re: How to record fund transfers from one owner's contribution to another owner's contribution?

Hi Tracey,

Thank you for your reply.

However, your reply did not help at all as I'm myself a newly graduated accountant and I need to learn all these transactions through the help provided here at the forum. It should just be an easy query for you and your team to solve, aye?

 

 

Tracey_H
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Re: How to record fund transfers from one owner's contribution to another owner's contribution?

Hi @HamAutos 

 

As we're not accountants we're not permitted by law to provide specific advice on the accounts and tax codes used when recording transactions.

 

From a software perspective you would be looking at recording a general journal to transfer amounts from one account to another. The Help Article, General journals, has detailed information.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
Previously @bungy15

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HamAutos
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Re: How to record fund transfers from one owner's contribution to another owner's contribution?

Thank you for that.

 

Now, another query;

Could you please tell me how to change from MYOB Essentials with Payroll to the one without a payroll?

 

Thank you

Tracey_H
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Re: How to record fund transfers from one owner's contribution to another owner's contribution?

Hi @HamAutos 

 

This Help Article, MYOB subscription details, has information on viewing and changing your plan.

Cheers,
Tracey
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DuncanS
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Re: How to record fund transfers from one owner's contribution to another owner's contribution?

@HamAutos @Tracey_H 

 

HamAutos,

 

A Sole Trader has Owners Equity/Drawings as a Equity Account.

 

A Company has Equity and Director Loan Accounts.

The Equity Accounts reflect the Shareholders Share Capital and must agree with the ASIC Record.

The Director Loan Accounts are normally recorded as Non-Current Liabilities ie the Director has lent money to the Company.

 

By written agreement, you could do a Journal from 1 Directors Loan to the other.

 

Duncan  

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days

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