Optimising Balance Sheet - Removing "Due to Related Party" from Other Current Liabilities HELP

Hi there,


I have a client, who is trying to get a loan, so I want to enhance his financials.


In the Current Liabilities section→ there is a “Due to Related Company” of 17000.


The owner of the company, I am preparing the Balance sheet for, also owns the related company.


Is there anyway I can remove this due to related company off the balance sheet of parent company trying to get a loan? IF related company cancels the debt for instance?

I want to comply with gaap, and not commit fraud.


Thanks.

Comments

  • ConstructionConstruction Registered Posts: 26
    Which loan are you referring to? I don't understand your question.

    Due to related party ........means they owe the related party 17000.

    I want to remove that number.........so the balance sheet looks better.
  • CasuCasu Registered, Users Awaiting Email Confirmation Posts: 102
    You are preparing the balance sheet after the end of the accounting period - so you want to remove something that hasnt happened ie falsify the records?
    Hope you have some good pii cover
  • ConstructionConstruction Registered Posts: 26
    Not falsify. These are interims.................not year ends.

    Again I have to emphasize, I want to do nothing fraudelent.

    If relarted party writes off the debt, then it shouldn't be on the parent's financials right?
  • CasuCasu Registered, Users Awaiting Email Confirmation Posts: 102
    are you qualified? does your membership level cover you to do this level? As it appearing at parent level is a bit fundamental. you said related earlier, now youve changed the story. not getting the full facts!
  • BertieBertie West Midlands Registered Posts: 376
    Awesome post, of which entirely compliments your QB for beginners question.
  • ConstructionConstruction Registered Posts: 26

    Yes, it'll appear on the parents accounts.



    But what will happen after the funds have been obtained?

    Why will it appear on the parents statements? If the related party chooses to cancel the debt?


    Again, these are interims not year ends.
  • CasuCasu Registered, Users Awaiting Email Confirmation Posts: 102
    Bertie said:

    Awesome post, of which entirely compliments your QB for beginners question.

    Totally agree!!!!!! Depth and out of.
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