Hello,

Last year I invested personal funds to manufacture a product that I’ve been selling online. The money is not expected to be paid back for a couple of years so it’s important that I know at what point I’ve covered my cost.

As last year was the first the product was sold there were more expenses associated with it, and not so much now.

I’ve set up Sage to account for all sales related to the ‘product’, and have a separate bank account to keep track of other work I do:

1020 Cash in Bank – Manufactured Product

1020 – Cash in Bank – Other Freelance

Initial Entry: of online sale

Debit    1020 (Cash in Bank – Manufactured Product)

Credit: 4200 (Sales)

Debit:  5648 (On-line sales fees)

Year-End Adjustment takes into account the final total in Bank Account for Manufactured Product: 1020

Debit: 2100 (Accounts Payable -loan to owner)

Credit: 1020 (Total Cash in Bank in account)

Question: Although the amount invested is an Owner’s Contribution, is it possible to keep this amount as an on-going ‘Payable’ until a profit starts to be made?

Last year I did not include any amounts in Owner’s Contributions.

Thanks

Acctcor