[Question] Owners Equity Account vs Share Capital

[Aly]

I understand that in a Partnership's and Sole Proprietor's books, contributions from owners are accounted for in Owner's Equity. But what of a small Private Company? What is the accounting treatment for owners depositing amounts into the company's bank account for example? Does that affect the share capital account? or am I missing something? If BANK debits, what will the contra account be?

I apologise if this is a dumb question... Still learning

[Dave A]

If it isn't a payment to purchase shares, it'll be credited to the shareholder's (or director's) loan account. Depending on the repayment terms, this will be a long term or current liability account.

[Aly]

So consequently, If an owner pays for a company expense (like web hosting ) the resulting treatment would be;

Dr Web Hosting Expense
Cr Shareholder Loan Account

?

[Dave A]

Correct.

[Aly]

You are leadership!

Thank you.