Addisson rockwell co-Document a Loan Receivable in Accounting?
The foremost step in recording a loan from a business officer or proprietor is to set up a liability account for the loan. Document the loan in the general ledger You will debit cash for the payable of the loan and credit short-term notes owed for the amount of the loan that will be paid throughout the year and long-term notes payable for the amount that is not due to be paid during the year.