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Interest-Free Shareholder Loan

Recording cash injected by a business owner to cover short-term operational costs.

Account NameTypeDebit ($)Credit ($)
Cash in BankAsset (+)10,000.00-
Due to Shareholder (Loan)Liability (+)-10,000.00

💡 Accountant's Note

Common in startups and SMEs. The owner puts personal money into the company. It is a liability for the company because it eventually needs to be paid back to the owner.

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