So if the owner made a purchase in error on his personal card for $3,000.00 what we would normally due is issue an expense reimbursement for that amount. However, a payment was made directly from business account for the amount in full to the personal card.
To account for this would do the following:
Record Purchase
Debit Expense 3,000.00
Credit Equity for 3,000.00
Record Payment
Debit equity 3,000.00
Credit cash 3,000.00
Also, for record keeping purposes would the statement and receipt be saved with other payments for the period, or would we save it behind the bank requisition?