Quick question regarding profit and share holder's loans

1

Hello,

I have a quick question regarding the share holder’s loans in a very small company(work form home) vs the profit at the end of the year.
When I generate a profit and loss statement in manager, I see a profit, let’s say 10 000 Euro.

But at the same time, I see a shareholder loan repayment of let’s say 9000 Euro in the trial balance which is correct.

I was expecting to see the shareholder loan repayment as some kind of expense that brings the profit down to 1000 Euro, but instead, I still see a taxable profit of 10 000 Euro even if the money is not in the account (as it has been repaid to the shareholder).

Could someone explain to me what I am missing out in the reports?

Thank you.

2

To answer your question, we need to know how your chart of accounts is set up, including the equity section and expense accounts.

By shareholder’s loans, do you mean capital contributions to the business? Or do you mean loans recorded in liability accounts? Repayment to investors is not always an expense of the business. Frequently, it is an equity transaction and affects only balance sheet accounts.

3

Yes my apology, I meant a capital contribution to the business. I see what you mean about the balance sheet, it is what I see now. Good to know. Thanks