I have a client (limited company) who I have set up on Quickbooks from 01/01/2014. Prior to this he kept very poor accounting records and all I received was a balance sheet from his existing accountant - which I have used to set up QB.
On 02/02/2014 my client has paid back a company loan which wasn't showing on his balance sheet as a liability on 31/12/2013.
My question is...which nominal account should I assign this loan repayment to?
I have a client (limited company) who I have set up on Quickbooks from 01/01/2014. Prior to this he kept very poor accounting records and all I received was a balance sheet from his existing accountant - which I have used to set up QB.
On 02/02/2014 my client has paid back a company loan which wasn't showing on his balance sheet as a liability on 31/12/2013.
Caroline,
I'm finding it difficult to decipher what you mean by "client" in the second paragraph. Do you mean that your client company has paid back a loan it had previously received (but not recorded), or, do you mean that the owner/director of the company has paid back a loan that he/she had previously received from your client company (the loan balance should have been recorded as an asset in the company's books, not a liability)?
Regards,
(Edit: changed would to should)
-- Edited by Onion4Sage on Tuesday 12th of January 2016 08:58:10 AM
Thank you for your reply, I can see that my question wasn't worded very well when I have re-read it today.
I meant that the limited company paid back a loan of £10,000 which it had received in 2013 but that had not been recorded on the Balance Sheet as an outstanding liability on the year end accounts.
I'm not sure if it's as simple as setting up a Loan Repayment account, putting the £10,000 expense in there and then advising my client's accountant of what has happened?
