We have a company with 2 members. The one member paid some of the company's expenses in the previous financial year has the company was being setup (to the total amount of about R380,000), and also lent the company an amount of R150,000 in cash for operational running . My question is, how do we record this in our new accounting software (pastel partner) in the current financial year?
e.g. Startup Cash Loans of R350 000.00 for various activities ( i.e. Traveling overseas / Local to secure agency for products / etc.)
Leasing of a vehicle and insurance on the vehicle during this time (prior to current financial year)
purchases of Software / Printer / computer etc (prior to current financial year)
rental of office space (prior to current financial year)
My Question : how would i be able to go about processing these transactions ... do we add this as an equity account, or can we add it as a long-term liability account and treat it as a normal loan. n.b. all cost came of the members personal accounts and not company bank account.