Question: Loan from Ltd Co A to Ltd Co B?
elliep
Registered Posts: 2 New contributor 🐸
Hi
I am new here and need a bit of help.
Ltd Co. A is loaning Ltd Co. B £30,000 on a short term basis. How do I account for this is Ltd Co. A books? Would you class this as an expense or do you think it should be recorded elsewhere - bearing in mind it is only a loan and will be repaid within 12 months?
Your help here would be much appreciated. :001_smile:
Many thanks
Ellie
I am new here and need a bit of help.
Ltd Co. A is loaning Ltd Co. B £30,000 on a short term basis. How do I account for this is Ltd Co. A books? Would you class this as an expense or do you think it should be recorded elsewhere - bearing in mind it is only a loan and will be repaid within 12 months?
Your help here would be much appreciated. :001_smile:
Many thanks
Ellie
0
Comments
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Hi Ellie
The loan to Ltd Co B will be a asset (debtor) of Ltd Co A. Therefore it should be recorded in the balance sheet as such.
The loan will not be an expense unless it becomes a bad debt.0
