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October 23, 2019
Question

I paid a subscription from my personal account.How can I change to business account

  • October 23, 2019
  • 1 reply
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1 reply

October 23, 2019

Hi galbeshig

 

You can do either of the methods listed below;

 

Set up a credit card chart of account called Personal Purchases. Then create an expense for what was actually purchased and select the account above in the payment account box. When the company pays this back to you create another expense however in the category section select the credit card account you set up above and the payment account should be your business account.

 

or

 

Set up a current liability account from the chart of accounts, create a journal entry, this relates to the item actually purchased, on line one of the journal in the account column enter the expense account relevant to the purchase,in the credit colum enter the amount of the purchase, if you are applying vat the amount in credit column should be the net amount and then select 20%s in the vat column. On line two enter the liability account you created above, in the debit column enter the gross amount of the purchase so the journal balances, save. When/if your business pays you back create an expense, in the category section enter the liability account and select the business bank account in the payment account box.