If the loan is to the company, as stated in your original email, it is a liability of the company. Stan is incorrect, but if the company makes a loan TO the director, then it would be an asset of the company and he would be correct.
Thank You, Gyle McCollam Gyle McCollam 609.680.2326 Mobile [email protected]<mailto:[email protected]> email ________________________________ From: gnucash-user <[email protected]> on behalf of Dr. David Kirkby <[email protected]> Sent: Thursday, December 9, 2021 10:23 AM Cc: GNU Cash User <[email protected]> Subject: Re: [GNC] Directors loan - do I need an expense account? On Thu, 9 Dec 2021 at 13:57, Stan Brown <[email protected]> wrote: > Reminder: The normal thing is to reply to the GnuCash list, not to > individual people who post. > > On 2021-12-08 15:49, Dr. David Kirkby wrote: > > Liabilities -> Accounts Payable -> Director Loan. > > It's not a liability to the company. It will become an asset (to the > company) when it is paid out, and the asset will be extinguished when > the loan is repaid. > I can't understand why you say it's not a liability, when the company owes money to someone else? How is it any different to owing money on a credit card for example? Stan Brown > Dave _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
