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Ssekki
April 21, 2020
Solved

What is the journal entry to fix a credit card payment made from my personal checking account on accident?

  • April 21, 2020
  • 2 replies
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I mistakenly paid my credit card bill with my personal checking account (I paid directly through the Capital One app). I wrote myself a check from my business account to pay the money back to my personal account. What I need to do now is clear the bill that was entered for the credit card and tie it to the check I wrote myself from my business account. Is there a journal entry to fix that? 

Best answer by IamjuViel

Hello, @Ssekki.

 

When paying your business credit card transactions using your personal account, you'd want to use the Partner's equity or Owner's equity account in the journal entry. I'll guide you how.

  1. Go to the Company menu.
  2. Select Make General Journal Entries.
  3. Fill out the fields to create your journal entry
  4. On the first line, select the expense account for the purchase.
  5. Enter the purchase amount in the Debits column.
  6. On the second line, select Partner's equity or Owner's equity.
  7. Enter the same purchase amount in the Credits column.
  8. Click Save and close.

Once completed, you can reimburse the personal account by writing a check or creating an expense transaction. Just make sure to associate the transactions to the correct account. 

 

Here's how to write a check:

  1. Go to the Banking menu.
  2. Choose Write Checks.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the category column, select Partner's equity or Owner's equity.
  5. Enter the amount to reimburse.
  6. Click Save and close or Save and new.

Let me know if you have other questions about managing your expense transactions. I'm always here to help.

2 replies

IamjuViel
IamjuVielAnswer
April 21, 2020

Hello, @Ssekki.

 

When paying your business credit card transactions using your personal account, you'd want to use the Partner's equity or Owner's equity account in the journal entry. I'll guide you how.

  1. Go to the Company menu.
  2. Select Make General Journal Entries.
  3. Fill out the fields to create your journal entry
  4. On the first line, select the expense account for the purchase.
  5. Enter the purchase amount in the Debits column.
  6. On the second line, select Partner's equity or Owner's equity.
  7. Enter the same purchase amount in the Credits column.
  8. Click Save and close.

Once completed, you can reimburse the personal account by writing a check or creating an expense transaction. Just make sure to associate the transactions to the correct account. 

 

Here's how to write a check:

  1. Go to the Banking menu.
  2. Choose Write Checks.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the category column, select Partner's equity or Owner's equity.
  5. Enter the amount to reimburse.
  6. Click Save and close or Save and new.

Let me know if you have other questions about managing your expense transactions. I'm always here to help.

    S
    SsekkiAuthor
    April 21, 2020

    Thank you! That worked. 

    john-pero
    john-pero
    April 21, 2020

    Fix what? Not with a journal entry.

     

    You should, since you move personal funds in and out, have a Cleariling bank account. Pay the bill from the Clearing account. Make a deposit to clearing from owner equity contribution. Cut check to you posting to owner draw, or not. There is no law saying  you have to ever reimburse yourself for adding money to the business. All you have to do is keep track

      S
      SsekkiAuthor
      April 21, 2020

      Thanks John! That makes sense. I guess either way would work. For some reason I get nervous when my personal gets mixed up with my business. 

       

      Thanks for responding with a solution. Much appreciated! 

       

       

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