That`s why I said it seems too good to be true. Also I don`t think accounting 101 is my real problem, it is much much more knowledge and experience that I`m lacking! That is why I`m on this forum asking the experts!
So it seems if I were to do what I said, and have the company write a cheque to the lender, then the asset(property) will have to belong to the company. If I want the asset under my name, it will have to be myself who write a cheque, hence the company has to pay me first either via div/income/loan.
Thanks!
And If I am wrong again, please do correct me!
QUOTE (thomasbeyer2000 @ May 4 2009, 06:22 PM) same thing .. the cheque is to the bank ON BEHALF OF YOURSELF the beneficial owner of the asset .. i.e. a loan or a dividend or income to YOU PERSONALLY !!!!
If you write a cheque to someone OUTSIDE the firm it is either:
a) a loan, or
b) a purchase of an asset, or
c) a dividend, or
d) income, or
e) a payment for an invoice i.e. an expense payment, or
f) taxes
please get a basic accounting 101 !!
Equity in firm = assets - liabilities
In accounting, if cash (which is an asset) is debited, something else on the asset side has to be decreased or on the liability side increased !
so cash goes down. What goes up: another asset or equity goes down or a (tax) liability goes down or payable goes down.
So it seems if I were to do what I said, and have the company write a cheque to the lender, then the asset(property) will have to belong to the company. If I want the asset under my name, it will have to be myself who write a cheque, hence the company has to pay me first either via div/income/loan.
Thanks!
And If I am wrong again, please do correct me!
QUOTE (thomasbeyer2000 @ May 4 2009, 06:22 PM) same thing .. the cheque is to the bank ON BEHALF OF YOURSELF the beneficial owner of the asset .. i.e. a loan or a dividend or income to YOU PERSONALLY !!!!
If you write a cheque to someone OUTSIDE the firm it is either:
a) a loan, or
b) a purchase of an asset, or
c) a dividend, or
d) income, or
e) a payment for an invoice i.e. an expense payment, or
f) taxes
please get a basic accounting 101 !!
Equity in firm = assets - liabilities
In accounting, if cash (which is an asset) is debited, something else on the asset side has to be decreased or on the liability side increased !
so cash goes down. What goes up: another asset or equity goes down or a (tax) liability goes down or payable goes down.