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hhroadsecure
hhroadsecure
July 25, 2021
Question

How do I record a vehicle purchased for the company, before the company was registered?

  • July 25, 2021
  • 1 reply
  • 0 views
I paid cash for it because I didn't want to lose out on it but can't see how to record that in QBO. I have the receipt in there but am at a loss as to how it should be recorded as every way I try I end up with a -$13552 account. Can I add an owner investment account or something like that?

1 reply

carolineambrozio
carolineambrozio
July 25, 2021

HI @hhroadsecure,

 

Congrats on purchasing the vehicle for your business. I'd be glad to steer you in the right direction.

 

Normally, you create a fixed asset account vehicle, with a sub-account accumulated depreciation vehicle, and credit cash account. But because this transaction falls under accounting, it's best to reach out to your accountant to make sure you use the appropriate type of asset, as they are trained on how to do this. If you don't have an accountant no need to worry, we can help. You can go to My Accountant>Find a pro to help to find an accountant in your area.

 

If you have any questions please feel free to reach out and let us know. We'd be happy to help.

hhroadsecure
hhroadsecureAuthor
July 26, 2021

Thanks and thanks for the reply. What I am trying to find out is how I record the payment to account for the asset being there. Like how I explain the personal investment in the company. I will talk to my accountant about it as well but I thought maybe there was a way to account for it being there. I have the receipt entered and have it being paid out of petty cash but now petty cash is $14000 in the hole. 

T
Tammy_H
July 26, 2021

Hi hhroadsecure,

 

I know when you are adding assets to your business, there are a lot of things to think about. QuickBooks Online allows you to make entries easily. I want to ensure that you get the support you need.

 

When you're adding assets, you're also injecting equity into the company. Here are a couple of articles that explain how to set up an asset account and record owner's equity:

If you're still unsure of how you should enter the transaction, I recommend you contact your accountant as suggested above.

 

I'm here if you have any other questions. Have a great day!

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