Individuals who borrow money from our company have IOUs. The reasons for borrowing money are engineering materials and project funds. The previous accounting subjects were different.

First of all, a loan like yours is not a short-term loan. Short-term loans refer to bank loans due within one year.

There is little difference between personal loan reasons and engineering materials.

Debit "accounts payable" means that the project payment of this person has been settled and the account has been paid. Credit "bank deposit" means that he has been paid from the bank.

Debit "manufacturing expenses" and credit "bank deposits" means that materials purchased with bank deposits are directly reimbursed and used by auxiliary production workshops.