QuickBooksHelpIntuit
Selling, buying, transfer of shares among business owners
by Intuit• Updated 2 months ago
Let's say that this business is made up for 3 different owners - A, B and C.
C has left the business and has sold $10000 worth of his shares evenly to A and B. So, each of them gets $5000.
Assuming that each business owner already has their own respective equity accounts, we'll have to pass a journal entry to make the required adjustments. To do this:
- Select + New.
- Select Journal Entry.
We have to debit C's equity account to reduce it and at the same time, credit the equity accounts of A and B to raise it.
The transacting of cash is among the owners and does not involve the business's bank account. As such, all that is required is to record the transfer of shares.
Sign in now for personalized help
See articles customized for your product and join our large community of QuickBooks users.
More like this
- Mixing business and personal funds in QuickBooks Onlineby QuickBooks•Updated June 21, 2024
- How to pay back to the owner who paid for purchases on behalf of businessby QuickBooks•1•Updated February 02, 2024
- Add an owner or partner to your books in QuickBooks Onlineby QuickBooks•2•Updated 1 month ago
- Categorise online bank transactions in QuickBooks Onlineby QuickBooks•7•Updated July 30, 2024