I use Manager Accounting for two entities, myself and a Trust.
There is a loan outstanding between myself and the Trust; in other words I lent the Trust some money.
In my personal balance sheet the loan amount appears as an asset.
In the Trust balance sheet it appears as a liability.
I would like to convert the loan from myself to a capital investment in the Trust.
The end result would be that the balance sheets for both entities would show these assets and liabilities with a value of zero.
I thought that maybe a Journal Entry would be the way to record it, but I can’t figure out how to do it.
Can anyone help?
Manager has module for trusts named Capital Accounts where you create yourself as a beneficiary. Then you can make a journal entry where you Debit loan account and credit Capital Accounts.
The advantage of this approach is that when trust is distributing income, the income will be distributed to capital account.
The report Capital Accounts Summary under Reports tab then shows movements within capital account for the period.
Beautiful.
That got it!
Thanks Lubos, for your prompt, helpful reply.
I love this Manager software.
