Debit and credit mix up


I am sure I am not the only one struggling with this but I always mix up the “credit and debits” for certain accounts.

Right now I have a director load of 5000(the business owes my wife 5000 euro), I create the shareholder loan liability account but I am unsure if the starting balance should be a debit or a credit.

At the moment I have set it as a credit of 5000 Euro, am I correct with this?

In my head it would have been the opposite way around(debit = debt = owing) but it looks like in accounting, a debt can be a credit if the account is a liability(hope I am correct with this…).

Thank you.

You are correct, it should be in the Current Liabilities Section, and should be a Credit

Thank you so much!

Owing to you.
When a supplier gives you a credit account, its owing to them


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