We have a loan outstanding in which no monies actually changed hands. Our district actually paid out money on our behalf, and now we need to pay them back. I created a liability account, but have no idea the best way to set up the beginning balance. After reading several other questions/answers, I tried CR the liability account and DB the unrestricted net assets. I'm not sure this looks right. Please help!!
Crediting the liability and Debiting the equity will simply add money to the balance sheet without changing bank balances at all. This sounds like it does what you need it to, to show money owed without actually taking gaining an asset from it.
