I have made a few personal debit card payments that I want to record as Owners Equity, however, this term does not appear on the dropdown list. Can someone help please?
Solved! Go to Solution.
Hey @Anonymous,
Welcome to Community.
I can certainly help you with this.
Firstly, you may wish to go into your Chart of Accounts and check if you have an Owner's Equity account within the list. This account is not always created by default so it would be prudent to check if you have one first. If you don't have one, you can create one by clicking on the New option in the top right of the screen within Chart of Accounts.
You would need to select the Account Type as Equity and the Detail Type as Owner's Equity or Partner's Equity before saving the account.
Once you have the account set up, you can follow the steps below to record the expense and the reimbursement to your personal account
To record the initial expense to the business,
Account: Expense account appropriate for the purchase
Debit column: Amount of purchase
Name: (Optional) Add a customer if you want to associate the expense to a customer
Account: Owner's equity or Partner equity
Credit column: Amount of the purchase
Memo: You can add "Reimbursable" to help you identify the transaction later.
When you are ready, you can then record the reimbursement to repay the funds to your personal account. You can do this either by a Cheque or by an Expense transaction as below.
Purchased from: Name of the partner/owner. You can also leave this blank
Bank Account: Account you are reimbursing from (you can also use petty cash)
Account: Partner's Equity or Owner's Equity
Amount: Amount of the reimbursement
Customer: Leave this blank
Let me know if you have any further queries.
Hey @Anonymous,
Welcome to Community.
I can certainly help you with this.
Firstly, you may wish to go into your Chart of Accounts and check if you have an Owner's Equity account within the list. This account is not always created by default so it would be prudent to check if you have one first. If you don't have one, you can create one by clicking on the New option in the top right of the screen within Chart of Accounts.
You would need to select the Account Type as Equity and the Detail Type as Owner's Equity or Partner's Equity before saving the account.
Once you have the account set up, you can follow the steps below to record the expense and the reimbursement to your personal account
To record the initial expense to the business,
Account: Expense account appropriate for the purchase
Debit column: Amount of purchase
Name: (Optional) Add a customer if you want to associate the expense to a customer
Account: Owner's equity or Partner equity
Credit column: Amount of the purchase
Memo: You can add "Reimbursable" to help you identify the transaction later.
When you are ready, you can then record the reimbursement to repay the funds to your personal account. You can do this either by a Cheque or by an Expense transaction as below.
Purchased from: Name of the partner/owner. You can also leave this blank
Bank Account: Account you are reimbursing from (you can also use petty cash)
Account: Partner's Equity or Owner's Equity
Amount: Amount of the reimbursement
Customer: Leave this blank
Let me know if you have any further queries.
You're welcome. Always happy to help
Hi, @Anonymous
I am happy you got your problem resolved!
For inspiration and advice on business-related problems, feel free to contact me or pop over to the business discussion boards (all of which are linked below). I hope you have a great day!