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MYOB / Quickbooks – Personal Expenses and a Negative Loan Account

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MYOB / Quickbooks – Personal Expenses and a Negative Loan Account

MYOB / Quickbooks – Personal Expenses and a Negative Loan Account

One of our bookkeepers was working on a new client – she said – “There are quite a few personal expenses being spent out of the Business Acc (i.e. taking wife out to dinner and taking cash out at ATMs etc), I am using Liability Acc ‘XXX-Loan’, and at the moment it is -$12,000ish, however he initially invested $15,000 into the business and I feel this should be offset to that Liability Acc… ? Do I leave it as a negative running balance.. ??”

Answer – Yes leave the account whether negative (credit) or positive (debit) – there will be other adjustments at end of tax year, so let the tax agent finalise those and where the loan account ends up – they will advise the client.

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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

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