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MYOB & Reckon/Quickbooks – Personal expenses and negative loan account
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Published on Tuesday, 12 January 2016 07:24
A new client called – She said - There are quite a few personal expenses being spent out of the business account (ie taking family out to dinner and taking cash out at ATMS etc), and I am using a liability acc 'XXX-Loan', and at the moment it is -$12,000ish, (in negative) however she initially invested $35,000 into the business and I feel this should be offset to that owner liability acc... ? Do I leave the account with personal drawings 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, or may advise you what they want you to do.
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