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Issuance of a Convertible Note
Recording cash received from an investor via a convertible debt instrument (common in tech startups).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank | Asset (+) | 50,000.00 | - |
| Convertible Notes Payable | Liability (+) | - | 50,000.00 |
💡 Accountant's Note
At the start, a convertible note is recorded as debt. It only moves to Equity (Shares) later during a 'Conversion Event' or a new funding round.
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