- Joined
- Aug 11, 2015
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Which categories am I supposed to use for short loans?
EX:
John Doe gives the company $1000. In two weeks, we are going to pay him back this $1000. No interest or anything like that. Simple in-and-out.
Is it: $1000 into "other current liability" (I labeled it as "simple loans")
Then when paying it out via check, I pay "John Doe" $1000, but the category in the check...is it "other current liability" again? Or is labeled as an "expense"?
EX:
John Doe gives the company $1000. In two weeks, we are going to pay him back this $1000. No interest or anything like that. Simple in-and-out.
Is it: $1000 into "other current liability" (I labeled it as "simple loans")
Then when paying it out via check, I pay "John Doe" $1000, but the category in the check...is it "other current liability" again? Or is labeled as an "expense"?
