I thought were telling me to enter them in as liabilities on the balance sheet,
Well, it *is* a liability to the borrower, so long as the borrower is required to pay it back. In other words, the borrower is "liable" for paying the borrowed money back to the lender.
It's become apparent that you don't have a complete understanding of how things work - particularly with the balance sheet. I would highly advise you to seek professional help, as you're not going to learn this stuff through osmosis.
