Question

Purchase of assets with personal funds for single member LLC

7 replies
73 views

How to record a purchase of a computer and a trailer that was purchased for the business from personal checking and credit card account? This was purchased for the business before we had a business account. I know I will set up an asset account for each, but I'm confused as how to record for the personal checking and credit card that was used.

Thank you!

QuickBooks Online

Rustler

Level 15

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

make a deposit in the cash type bank account = to the total paid, use the equity investment account as the source account for the deposit

Pay for the two assets from the cash type bank account

R

r_maxAuthor

Sorry, I'm still learning Quickbooks and not following what you mean by:

make a deposit in the cash type bank account = to the total paid, use the equity investment account as the source account for the deposit

Pay for the two assets from the cash type bank account

Any clarification would be appreciated.

J

JonpriL

Level 9

It's nice to see you again, @r_max!

You can deposit the funds to your cash type bank account. Allow me to join into this conversation so you can record the assets you purchased.

In addition to @Rustler's solution, here's how you can make a deposit:

Go to the Plus icon.
Under Other, select Bank Deposit.
From the Account drop-down menu, choose your cash-type bank account.
Select a payee from the RECEIVED FROM column.
Choose your equity investment account under the ACCOUNT column.
Enter the total amount paid.
Click Save and close.

Once completed, you can pay your purchased asset by writing a check. Here's how:

Go to The Plus icon.
Under Vendors, select Check.
Select a Payee and Payment date.
Choose your cash-type bank account in the Bank Account drop-down menu.
Under Category, select the asset accounts of your purchased assets.
Enter the amount.
Click Save and close.

This way, you can record all transactions of your purchased assets.

In addition, here's a couple of articles you can read to learn more about creating a deposit and writing a check:

It'll be always my pleasure to help if you have any other questions.

M

Malcolm Ziman

Level 4

@r_max wrote:

How to record a purchase of a computer and a trailer that was purchased for the business from personal checking and credit card account? This was purchased for the business before we had a business account. I know I will set up an asset account for each, but I'm confused as how to record for the personal checking and credit card that was used.

Thank you!

I would create a Journal Entry:

Debit Fixed Assets, if you want to classify the purchases as fixed assets, or expense type accounts if not,

Credit Owners Contributions - equity type account, if this is a sole propietorship or partnership, Shareholder Loan Account if a corporation

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