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Record accidental personal use of business debit card

Forum|Forum|7 years ago
December 11, 2018
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I read the comments/responses on handling a personal charge on a debit card but I have not found the steps on how to enter or set up the account to handle a personal use of a business debit card. I'm a S Corp and I need the first steps on setting this up in QuickBooks 2016 desktop.

QuickBooks Desktop

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- If the personal use is by an employee who will pay back the company, create an asset account to track the amount the company is owed and use it on the credit card charge. Then when you're repaid use the asset account in the deposit to your bank account for the repayment.

- If the owner used the card and will not pay back the company, then this is a reduction in the owner's equity in the company, so use an Equity account set up for draws for the credit card charge.

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Anonymous

Answer

- If the personal use is by an employee who will pay back the company, create an asset account to track the amount the company is owed and use it on the credit card charge. Then when you're repaid use the asset account in the deposit to your bank account for the repayment.

- If the owner used the card and will not pay back the company, then this is a reduction in the owner's equity in the company, so use an Equity account set up for draws for the credit card charge.

S

ShoSho

I have an S Corp. The registered owner isn't invovled at this time. The son is running the business and actually does not have any legal rights, at this point. However, he has used the company business card for personal purchases. He does not want to repay and wants this to be reflected as an owner draw, reduction in owner equity or applied as a bonus. He,however is not an owner or even partner. How do I record these personal purchases on the company credit card?