Transfers between entities

From: Michael G


Ok, I know this is a technical question, I know I will need to speak to an account, I also know I will need to speak to my lawyer.

My question relates to lending funds to entities (trusts/companies) and was curious what bookkeeping (invoices, statements) people have used and what info they have placed on the documents.

i.e. [amount] let to [name] trust on [date] at [rate] percent over [term].

What difficulties have people had, what system have they created to make life easier?

What things do I need to be careful of?

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Reply: 1
From: Paul Zagoridis

Hi Michael

I use book entries in both entities. Either a cheque changes hands or I create invoices, receipts etc.

Where I am concerned that I may have to prove the debt, I create a promissory note and file it.

Paul Zag
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