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the_tile_setters
the_tile_setters
February 2, 2019
Solved

business expense paid with personal funds

  • February 2, 2019
  • 2 replies
  • 0 views

Here's what I did:

I transferred $125 from my business checking acct. to my Personal Checking acct. and made a purchase for my business of  $377.00. I know I did it completely backwards and should have transferred the $252.00 from my personal to business to make the transaction but I was stressed out that day lol. 

Can you please tell me how to record the whole mess??

I know from the above it sounds like I'm a complete idiot, but sometimes I'm kind of

dyslexic when under stress

Best answer by Rustler
@the_tile_setters wrote:

Hi,

Thank you for helping me

I'm not sure how I'm to record the purchase. Write Check?

I'm using Premier Desktop

I'm sorry, could you go through it step by step.

I'd really appreciate it

My apologies, I am so used to these questions being for QBO that I overlooked your desktop tag

 

bring up write checks on the cash type bank account

leave the pay to blank

On the expense tab-

line one - the expense account for what you bought and the amount

line two -  owner equity investment and the same number as a negative

save the zero dollar expense

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

 

2 replies

Rustler
Rustler
February 3, 2019

If you are taxed as a sole proprietor or a partnership, code the 125 from business checking as owner equity draw.

 

to record the purchase with personal funds use the plus menu>expense, in the account section

line one, the expense account for what you bought and the amount

line two, owner equity investment and the same number as a negative

save the zero dollar expense

 

 

 

the_tile_setters
the_tile_settersAuthor
February 6, 2019

Hi,

Thank you for helping me

I'm not sure how I'm to record the purchase. Write Check?

I'm using Premier Desktop

I'm sorry, could you go through it step by step.

I'd really appreciate it

Rustler
RustlerAnswer
February 6, 2019
@the_tile_setters wrote:

Hi,

Thank you for helping me

I'm not sure how I'm to record the purchase. Write Check?

I'm using Premier Desktop

I'm sorry, could you go through it step by step.

I'd really appreciate it

My apologies, I am so used to these questions being for QBO that I overlooked your desktop tag

 

bring up write checks on the cash type bank account

leave the pay to blank

On the expense tab-

line one - the expense account for what you bought and the amount

line two -  owner equity investment and the same number as a negative

save the zero dollar expense

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

 

    JessT
    JessT
    February 6, 2019

    Hi the_tile_setters,

     

    I can guide you to record your transfer and purchase transactions in QuickBooks Desktop using Rustler's instructions.

     

    To code the $125, you can write a check using these steps:

    1. From the Banking menu, select Write Checks.
    2. Go to the PAY TO THE ORDER OF section and select your name.
    3. Click the Expenses tab below.
    4. Select the owner's equity account and enter the 125 in the AMOUNT field. Please have this checked with an accountant to make sure you select the right account.
    5. Click Save & Close.

    To record the purchase, you can use the Write Check function again. Then, go to the Expenses tab and select the type of accounts mentioned by Rustler above in line 1 and line 2. Then, as always, you can verify the accounts with your accountant.

     

    Lastly, I'd recommend entering a memo in these transactions, so the other members of your business can easily identify them.

     

    If you have other questions, you can always go back to this thread.

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