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Hi, I have a small company and received small amounts of money throughout the year directly on the company bank account to keep it running. I assume these credit operations will go in the company capital (?). I did not know how to register them in my accounts so I simply created a new Journal entries. Is this correct? However the writing remains in red (as it is not reconciled and I would not know how to do it) and it does not appear in the overall months reports (ie general ledger). Can someone help me to understand:
- The proper way to register injection of capitals in the company account
- The correct way to reconcile it and how
Thank you for your support E
It depends a bit on how the lender considers it:
I don't think we're talking about a capital increase with new shares. If so, please reply, so I can elaborate
Another possibility is that we're talking about a loan
In the second case you'll first have to create a liability account 'Shareholder loan'. When you reconcile your bank statements, you need to register the amount as Debit on the bank account (an increase on that asset), and as Credit on the liability account (an increase on that liability).
In Belgium, we have a specific account for just that: a shareholder or director who transfers money in and out the company.
I have created a CASH bank account called SHAREHOLDER LOAN. When i need to, I simply do a bank transfer from my personal account into my corporate account. In Odoo, I simply do an internal transfer from "Shareholder Loan" to "BANK ONE".
This way I can put in money, or take it out without tax implication.
At year-end, my accountant cleans out this shareholder bank account and transfers the balance into the correct SHAREHOLDER EQUITY account.
It is a simple solution and keeps the books balanced. You even have reconciliation in your BANK accounts (I do not bother reconciling my SHAREHOLDER LOAN bank account).
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|Asked: 1/4/14, 8:51 AM|
|Seen: 1813 times|
|Last updated: 1/18/18, 1:09 PM|