I was always told the shareholder loan was the money the shareholder used form company funds (ie he bought a pop from the petty cash drwer) adn now owes to the comany and a shareholder equity account is money the shareholder put into the comapny and is owed - ie he paid a company expense with his money

I need help setting up both accounts

I know its not "correct" but i use my personal visa for a lot of company transations and i also use the company accoutn to pay my mortgage (as the company now owes me so much ) when i need cash so i need to be able to enter both so they balance out....

Hi there:  Usually in a Limited Company only one Shareholder's Loan account is used for either money the shareholder puts into the company or money the shareholder takes out (or uses).    There should already be a Shareholder's Loan account listed in your Chart of Accounts.  If not, set it up in the Liabilities section.

Using your personal Visa for company transactions is OK as long as you are recording everything correctly.  As for paying your mortgage out of the company (Shareholder's Loan account), you should probably not do that.  You should just make a cheque payable to yourself for an amount to cover your mortgage and do the entry as a Cr. to Bank and a Dr. to Shareholder's Loan.  I know that it amounts to the same thing, but you really shouldn't be paying a lot of personal items through the Company Bank account.   Just have the company pay you a lump sum amount once in awhile out of the Shareholder's Loan account so that you can deposit it to your PERSONAL bank account in order to pay personal items.   Rita Deering

that makes sence- 1 account

set up as a long term liability>?

when our simply assc set up the accounts they misse dthis and all my balances form before as well :) fustrating to say the least

ok I changed an accoutn that was set up as user defined expense to shareholder equity, and made it a liability

it is a group G

is that correct?

Also can i just enter the balance form our last tax return, the last shareholder equity amount I have as one entry? then enter from there? or is some sort of historical data adjustment required

Hi there:  What version of Simply are you using?  I hope it is not Simply Entepreneur. 

You should NOT have to change some other account.   And the new account name will not be Shareholder Equity.   It will be Shareholder's Loan. It should be a new account that you set up and give it a G category.   And it should be set up in the LIABILITY section of the Chart of Accounts, probably in the Current Liability section is fine, down near the end of the number range. 

I think you need more advice from an accountant or GOOD bookkeeper familiar with Simply in order to get you started.      Rita Deering

yea well i thought i had hired some one that was an expert she even teaches classes but there are so many mistakes i am finding as i go on in working with it

i am 6 months in and want to fix this ASAP

how do i enter the current amount?

Hi, Maybe you can help me too, I have a partnership with my husband. We are just starting a small business and we haven't made any money yet. So we pay for our expenses with our personal cash. Should I enter that as :

A) pay epenses from partner contributions? (I'd have to change the account class to cash)

or

B) set up a new liability account and call it partner loan, and pay it from there? (again I'd have to set the account class as cash or it won't show up as an option to pay bills from)

Thank you

Thank you for your help.