Which account to use for partners loans?
I have a customer who has LLC and there are 3 partners. They deposit and withdraw money under loan. They do not want to use contribution nor distribution in 2020. They do this at least 3 or 4 times a months. First I created an Asset and a Liability account for loans from and to each partner but the business owners is asking me to create only one account as “due to/from xxx”. He wants to offset the deposits with withdrawals.
Now I am not sure how if I should merge this account to Liability or to Asset!
If I put in Liability some times the deposits are over the withdrawal and it would show a debit balance!!! and vice versa some times!
What do you suggest?
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