Personal Loan to Business

Create a Long Term Liability account called Due to Shareholder. Make a journal entry to manage the amount.

OK, I did that but when I click on "Pay Liabilities" It doesn't show it as an option to pay.

Thanks for the reply.... I am learning..

You may have to make another journal entry to move the funds out. (I believe it's an entry in Due to Shareholder and another for the bank account.) I'm not near my QB machine right now, or I'd go and have a look.

"Write Check".

Hmm still lost. It still doesn't show under "Pay Liabilities". I thought I would hit that button, see that the company owed me X amount of $'s and I would be able to pay myself back as I got money to do so. Am I attacking it wrong.

Tom, thanks for your help so far and I appreciate anything else.

David

You didn't respond to my earlier answer, I'll try again:

"WRITE CHECK"

Out of curiosity, where do you see "Pay Liabilities"? There are usually several ways to do something, but in the particular menus that I generally use the only "Pay Liabilities" functions are in payroll and sales tax. Neither of those relates to what you are doing, so I repeat: "WRITE CHECK".

attacking it

!-!

I think the OP wants to treat the loan as an accounts payable.

Defective RAM in my crystal ball, I didn't see that. Then he must set up a Vendor, enter a Bill, and "Pay Bills".

"Allan Martin" wrote ... > I think the OP wants to treat the loan as an accounts payable.

payroll

Is it possible to do it as a journal entry with one side the Due to Shareholder account and the other side the bank account?

Yes indeed, and make the account Due to Shareholder a type Accounts Payable.

OK, here is what I got:

Create a vendor under my name. Delete all deposits I made from personal money and recreate them under Bills I have to pay Vendors?

I am a little confused about the "Due to Shareholder" type account.

Guys, thanks for all the help. .... I am almost there.

From what you wrote above I can only conclude that you can't get there from here.

I've sent a note off to my accountant about this, since I'm in the same boat. I have set up the Due to Shareholder account as long-term liability, since we don't cash it out frequently. We're in the midst of setting up QB

In most cases setting it up as a long term liability is the correct way to go. The OP however fancys seeing the liability showing up when he selects pay bills. The only way this will happen is if the account is set up as a type "account payable".

I asked my accountant if creating a journal entry would handle it by debiting Due to Shareholder and Crediting the bank account. He seemed to think that would work.

Sure, it would certainly work. You could handle all of your disbursements (and everything else, for that matter) that way, too, but think about how clumsy that would be. Try to reserve journal entries for situations that do not involve common business transactions like writing checks, making sales, entering bills, etc.

As !-! wrote, you could use "Write Checks" and charge the "Due to Shareholder" (or whatever you called it) account. You could easily check the balance in the liability account at any time by looking at the trial balance or by double-clicking on the account in the Chart of Accounts. You could even leave the register window for that account open so that the balance and all past detail would be available to you at all times.

Setting yourself up as a vendor, as !-! also mentioned, would also be a solution, but I think the "Write Checks" option is the simplest.

As an aside, the "Due to Shareholder" account implies that the business entity is a corporation. I do not recall seeing in the original message any indication as to what type of entity is involved here.

Steve