The loan of honor finances the need for working capital

Finally, if the loan of credit finances the need for working capital of the company, the project holder must make it fully available to the company so that it is incorporated in the cash of the company:

It debits the account 512 "Bank"

And credits the account 4551 "Associates - Current accounts" or the account 108 "operator's account."

Subsequently, irrespective of the purpose of the financing of the loan of honor, the contributions made must be reimbursed to the partner when the financial situation of the company allows it:

It debits the account 4551 "Associates - Current accounts"

And account 512 "Bank" is credited.

In the case of the operator's account, it may also be levied by the head of the company (account 108 will then be debited instead of account 4551).

Conclusion: the loan of honor does not give rise to special accounting entries. It is the acquisitions of which it is the object that must be translated into accounting.