Skip to main content
M
michaelmcavoy86-
June 27, 2022
Question

I am trying to record a purchase by the owner of a corp with their own funds for the business. What is the journal entry for the GST portion?

  • June 27, 2022
  • 1 reply
  • 0 views
Right now I have this:

Office expense 139.93 GST 5%
Owner's Investment -139.93 Out of Scope 0%

However, this is causing a $7 difference in the entry. 
I have tried putting the difference into the GST payable account but I get an error.
How do I record this?

1 reply

T
Trish_T
June 27, 2022

Hi michaelmcavoy86-,

 

It's a pleasure to see you in Community.  Welcome!  QuickBooks Online provides options for accurately recording your transactions.  I'd be happy to assist!

 

It's not recommended to make business expenses with personal funds, but in QuickBooks Online you can record the expense seamlessly.  Here's how;

 

1. From the left menu click on +New

2. Select Journal entry

3. On the first line, use the ▼ dropdown menu and select the Expense account for the purchase

4. Enter the amount of the purchase in the Debits column

5. Choose the Owner's equity account on the second line

5. Enter the same purchase amount in the Credits column

6. When finished, hit Save and close

 

You'll have two options to reimburse the money and you can follow this helpful guide for the best fit.  Should you require additional assistance, I recommend reaching out to your accountant.  If you don't have one, we can help you locate a ProAdvisor in your local area by clicking here.

 

Please don't hesitate to reach back out with other questions.  We'd be glad to help!
 

Terms & ConditionsAccessibility statement