How to record business expenses paid with a personal funds

Hi sarahgress01,

Do you reimburse your personal account with funds from the business account?

If so you would record this percentage amount using an expense transaction, on the expense select the business bank account under 'Payment account' and enter an expense account on the Category drop-down.

Thanks!

Thanks for your reply.

No, I don't reimburse my private bank account, so in this case, am I OK just to do a Journal entry for a debit against the Telephone account and then a credit against Owners Equity?

If ever I wanted to reimburse my private account, would I do the Journal entry and then the expense transaction as per your instrutions below?

Many thanks.

Hello,

We would advise the best way to record this is to record only the business percentage amount of the transaction - i.e. enter an expense for this amount only, as you do not need to record the personal side of the transaction. If you do want to record this as a journal entry, we would ask for you to speak to an accountant as we are not able to advise which categories to use within a journal entry without being trained in accountancy.

The expense would be the most simple way to record this, as suggested by my colleague above.

Thanks,

Talia