@Yo1 wrote:
When the new owner took over, a new QB company file was started so the use of the program and the beginning of the financing were at the same time, in fact they were on the exact same date.
No money actually changed hands but when you do a journal entry it makes you enter what account the money came from and what account it is going into. It is going to the long term liability account created to track the payments but what do I put in the where it came from account, because again no money changed hands.
In John's example,. the money is going to what I assume is an asset account called Purchase price of business
But I disagree with that entry
instead of the asset account John uses, I think you should use opening balance equity or equity. Yes it will drive it negative, but that is as it should be, you added a debt to the company.
then when you enter starting balances for assets, inventory, etc etc those also post to OBE and offset that debt entry in equity
equity is the total of assets less the total of liabilities
