Loan Transaction

How to record Loan Transaction?

One of the most popular methods of financing is borrowing. Loans can be short term, long term, secured, or unsecured and should be recorded accordingly. It is important to keep track of the principle and interest amount, and record them respectively in books for correct accounting. Classification is vital as ‘interest’ paid on loan is…

How to record owner contribution in the business?

Owners or co-founders keep investing in their own businesses during early stage of their startup or even at later stage.Ā This helps them to improve the company’s cashflow or make funds available for new equipment, paidĀ marketingĀ or hiring additional staff. Recording capital investments of your own money or your business partner’s money is importantĀ for keeping company accounts…