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basrijn
Nov 20, 2019 10:58 PM UTC
Solved

Getting started: Due to Shareholder

Hi all,

 

Just starting on my freelance journey and Picked QBO as my accounting software. I have an accountant, but was hoping to do the bookkeeping myself.

 

Currently in the process of incorporating (Canada) and have some expenses I paid for (on my private CC).

 

I created an expense entry, but need to pick the correct "Payment account entry".

 

My accountant says to use "Due to Shareholder - Long Term Liability acct"

 

Using the help function I added a "Type = Long term liabilities, Detail = Shareholder Notes Payable" to the Chart of Accounts.

 

But that does not give me an Account to use in the expense form (needs to be an asset acct?)

What is the correct way to enter this?

 

Kind regards,

Bas

Rustler
RustlerAnswer
Nov 21, 2019 12:05 PM UTC

on the expense form

line one: the expense account and amount for what you spent from personal funds or personal CC

line two: the due to liability account and the same amount as a negative number

save the zero dollar transaction

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5 replies

Rustler
RustlerAnswer
Nov 21, 2019 12:05 PM UTC

on the expense form

line one: the expense account and amount for what you spent from personal funds or personal CC

line two: the due to liability account and the same amount as a negative number

save the zero dollar transaction

    Olao
    Olao
    Apr 30, 2021 11:34 PM UTC

    What payment account will be selected for this under the expense form?

     

    Thank you

    Lexi P
    Jun 3, 2021 10:13 PM UTC

    I have the same question! I understand how to create the Due to Shareholders account and what to put in lines 1 and 2 of the expense, but I do not understand what Payment Account to select.

     

    Please help!

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