Thank you for the question 💬 Providing loans to a business for operating expenses until it generates income is a common practice. As an owner, it’s important to keep track of the loan amount, interest rate, and repayment terms📄
You can account for the loan in your financial statements as a liability, which reflects the amount of money borrowed and owed to the lender💰
Additionally, you can track the interest paid on the loan as an expense in your income statement
It’s essential to maintain accurate records of loan transactions to avoid any confusion or discrepancies in the future.
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