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G
GreenLad
September 1, 2024
Question

How to sort receiving credit card payments on a personal card?

  • September 1, 2024
  • 1 reply
  • 0 views

So I'm sorting out business expenses that had been made on a personal card. Normally an expense would be put in a journal entry, the expenses being put under debit with the total going under credit. However, this is not an expense, but an online payment where the personal card is receiving money rather than paying. How would it go in a journal entry?

1 reply

K
KimAnnVA
October 1, 2024

I take all personal expenses and apply it to owner contributions or owner distributions on the balance sheet, if company has multiple partners, personal expense will need to be paid back to the company or deducted from a disbursement/guaranteed payment due to tax laws and regulations.   

 

It is best to keep personal expenses off of accounts but it happens, just understand that a non business expense is technically an owner draw. If owner does not like this option, they will need to deposit money in the same amount as personal payment so it can be balanced out. 

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