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money spent by director from personal account

The director of the company bought air tickets for business travel using his personal credit card. I need to record this transaction and also have a payable account for monies spent by the director. Please help me with the double entry and on how to create a payable account for the director.

Thanks

Best answer 04-18-2019

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QuickBooks Team

Re: money spent by director from personal account

Hello there, @dineshperera.

 

Good to see you here in the QuickBooks Community. Let me help provide guide you on how to pay for business expenses with personal funds . 

 

First, you'll need to record a business expense that was paid for by a director funds. Here's how:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Other, select Journal Entry.
  3. On the first line, specify the appropriate expense Account for the purchase.
  4. Enter the amount of the purchase in the Debit column.
  5. (Optional) Enter a customer Name to associate the expense with a customer.
  6. On the second line, in the Account column, enter the Owner's equity or Partner equity.
  7. In the  Credit column, enter the amount of the purchase.
  8. (Optional) In the Memo field, add Reimbursable to help you identify the transaction later.
  9. Select Save and close.

Once done, let's reimburse the owner by check by following these steps:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Vendors, select Check.
  3. (Optional) In the Choose a payee field, enter the name of the partner/owner.
  4. Select the Bank Account you are reimbursing from (you can also use petty cash).
  5. In the Account column, select Partner's Equity or Owner's Equity.
  6. Enter the Amount of the reimbursement.
  7. Select Save and close.

For additional reference, you can check this article: How to pay for business expenses with personal funds

 

I also recommend consulting an accountant if you're not familiar with the process and to ensure your books are accurate. 

 

If you have additional questions about the reimbursement, don't hesitate to leave a comment below. I'm always here to help you out. 

1 Comment
Highlighted
QuickBooks Team

Re: money spent by director from personal account

Hello there, @dineshperera.

 

Good to see you here in the QuickBooks Community. Let me help provide guide you on how to pay for business expenses with personal funds . 

 

First, you'll need to record a business expense that was paid for by a director funds. Here's how:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Other, select Journal Entry.
  3. On the first line, specify the appropriate expense Account for the purchase.
  4. Enter the amount of the purchase in the Debit column.
  5. (Optional) Enter a customer Name to associate the expense with a customer.
  6. On the second line, in the Account column, enter the Owner's equity or Partner equity.
  7. In the  Credit column, enter the amount of the purchase.
  8. (Optional) In the Memo field, add Reimbursable to help you identify the transaction later.
  9. Select Save and close.

Once done, let's reimburse the owner by check by following these steps:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Vendors, select Check.
  3. (Optional) In the Choose a payee field, enter the name of the partner/owner.
  4. Select the Bank Account you are reimbursing from (you can also use petty cash).
  5. In the Account column, select Partner's Equity or Owner's Equity.
  6. Enter the Amount of the reimbursement.
  7. Select Save and close.

For additional reference, you can check this article: How to pay for business expenses with personal funds

 

I also recommend consulting an accountant if you're not familiar with the process and to ensure your books are accurate. 

 

If you have additional questions about the reimbursement, don't hesitate to leave a comment below. I'm always here to help you out.