How do I enter monies borrowed by one of the shareholders? What do I enter it as?
When shareholders lend money to company, they are treated as any other creditor. So you should just go to Chart of Accounts, then create new liability account called Loan - Name of shareholder and then record received money transaction by going to Bank Accounts tab (if received into business bank account).
Categorize received money to this liability account.
Hello
Thank you so much for your response. I followed your steps and now my books are balancing
Regards
Sophie