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#1
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How do business loans affect the p & l?
I am trying to set up a P & L for a new business I set up for my son. Do I
list the loans I make to the business as "income" on the P & L?? Do I list the loans as an expense item? Please advise. |
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#2
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How do business loans affect the p & l?
The loans you make to the business have NO P&L impact.
Cash and Loans are balance sheet accounts. Following the accounting equation: Assets = Liabilities + Equity The loan is recorded as a Debit to "Cash" (increasing Cash) offset by a Credit to "Loans" (Increasing Loans) Does that help? -------------------------- Regards, Ron (XL2003, Win XP) Microsoft MVP (Excel) "Dvcdale" wrote in message ... I am trying to set up a P & L for a new business I set up for my son. Do I list the loans I make to the business as "income" on the P & L?? Do I list the loans as an expense item? Please advise. |
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#3
Posted to microsoft.public.excel.misc
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How do business loans affect the p & l?
Yes this helps and I thank you for the information. I knew I needed help
when I set up the P & l showing the loan monies as income and then showing a profit when I knew we were not profitable. Thanks again. Dale "Dvcdale" wrote: I am trying to set up a P & L for a new business I set up for my son. Do I list the loans I make to the business as "income" on the P & L?? Do I list the loans as an expense item? Please advise. |
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#4
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How do business loans affect the p & l?
Microsoft has a free accounting package that you can download - Accounting
Express or some such name. Far better to use a canned program, even a free one, than trying to re-invent the wheel. "Dvcdale" wrote: Yes this helps and I thank you for the information. I knew I needed help when I set up the P & l showing the loan monies as income and then showing a profit when I knew we were not profitable. Thanks again. Dale "Dvcdale" wrote: I am trying to set up a P & L for a new business I set up for my son. Do I list the loans I make to the business as "income" on the P & L?? Do I list the loans as an expense item? Please advise. |
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#5
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How do business loans affect the p & l?
Going to download now. Thanks.
Dale "Duke Carey" wrote: Microsoft has a free accounting package that you can download - Accounting Express or some such name. Far better to use a canned program, even a free one, than trying to re-invent the wheel. "Dvcdale" wrote: Yes this helps and I thank you for the information. I knew I needed help when I set up the P & l showing the loan monies as income and then showing a profit when I knew we were not profitable. Thanks again. Dale "Dvcdale" wrote: I am trying to set up a P & L for a new business I set up for my son. Do I list the loans I make to the business as "income" on the P & L?? Do I list the loans as an expense item? Please advise. |
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