Asked • 04/24/19

Nit picky personal accounting question: What is the right way to record borrowing from yourself?

I keep a spreadsheet with my personal financial statements (balance sheet, income statement, cash flow) that generally follows the corporate approach. I omit considerations of depreciation, etc. There's one nit picky detail that doesn't sit well with this approach. I took money out of my RRSP under the LLP to fund my graduate studies. My balance sheet at the time then had a corresponding lower amount for the RRSP account, and the money was spent. However, it's still somewhat of a liability in that it needs to be paid back in a given amount of time. The question is, how would I record that on my balance sheet? What I've done so far is included a liability *LLP withdrawal* with the outstanding amount as well as a corresponding fake asset *Education from LLP withdrawal* with the same amount such that the two together cancel out and don't affect the rest of the sheet. I just figured on this late night I'd post this question, but know that it is certainly not of utmost importance.

2 Answers By Expert Tutors


Alan M. answered • 05/07/19

4.8 (22)

Accounting and Math Tutor

Alan M.

Credit: $1,000 - for first annual LLP repayment


Hardy P. answered • 04/26/19

5 (13)

CPA, CMA, and MBA: Fortune 100 Accounting Manager & Seasoned Tutor

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