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AJRmoldsolutions
July 7, 2020
Question

Paying personal Credit Card from business

  • July 7, 2020
  • 1 reply
  • 0 views

So if the owner made a purchase in error on his personal card for $3,000.00 what we would normally due is issue an expense reimbursement for that amount. However, a payment was made directly from business account for the amount in full to the personal card. 

 

To account for this would  do the following:

Record Purchase

Debit Expense 3,000.00 

Credit Equity for 3,000.00

Record Payment 

Debit equity 3,000.00

Credit cash 3,000.00

 

Also, for record keeping purposes would the statement and receipt be saved with other payments for the period, or would we save it behind the bank requisition? 

    1 reply

    LeithG
    LeithG
    July 9, 2020

    hi AJRmoldsolutions:

     

    This looks like the right answer to me!

    I would attach the bank statement/receipt against the expense with a note in the memo field so you can trace it back later if you need to remind yourself what happenend.

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