What kind of account should be recorded for the loan?
The treasurer of a company borrowed $100,000 from the company and placed a note in his desk promising to repay the loan. However, he did not record the loan on the company’s books, and therefore did not report the loan on the company’s balance sheet.
This is an accounting question.
This is an accounting equation. I am trying to figure out how the accountant should have honestly recorded the business transaction.
Dr Loan (long term liabilities)
Cr Cash / Bank