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Using personal cash for initial inventory
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Using personal cash for initial inventory

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discountsbydana (116 ) View Listings
discountsbydana
(1 of 2)
Using personal cash for initial inventory
Jun 5, 2012 08:28 PM

So I'm just starting a new business and I have an S-corp.  I borrowed my initial startup money from my personal account which I used for inventory.  How and where do I account for that in my ledger.  Also, how does the fact that I borrowed the money from my personal account affect my profit line?

 
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Using personal cash for initial inventory

(1 Reply / 564 Views)
discountsbydana (116 ) View Listings
discountsbydana
Using personal cash for initial inventory
Jun 5, 2012 08:28 PM

So I'm just starting a new business and I have an S-corp.  I borrowed my initial startup money from my personal account which I used for inventory.  How and where do I account for that in my ledger.  Also, how does the fact that I borrowed the money from my personal account affect my profit line?

 
Last Post
Jul 5, 2012 09:30 AM
by plbleidl (213 ) View Listings
plbleidl (213 ) View Listings
plbleidl
(1 of 1)
Re: Using personal cash for initial inventory
Jul 5, 2012 09:30 AM

COGS=beginning inventory + purchases - ending inventory

Your borrowed money for inventory is the beginning inventory.

Borrowed money is a liability (credit) inventory is an asset (debit)

No change in revenue or expense till sold.

Interest is expense reducing your net income for the period.
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