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Marufa0013
Level 3

Year end adjusting entries (net salaries and wages payable with director's loan account)

Hello

In QBO, the direcor loan is categorized under current liability. So, when I am adjusting net salaries and wages payable with the direcor loan account I think the loan account should be debited. In the adjusting journal entry, the net salaries and wages payable is in debit side and Director's loan is in credit side. This is supposed to increase the director loan liability account, but, in the account history I am seeing the balance decreased  after the adjusting entry recorded even if it's showing as an increase in the liability account. Why is it so? If it's wrong, what should be the correct form?

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