We have just opened a new company; but an invoice for the new company was paid into our old company's bank account via card payment. What journal do I use to transfer the money from the old company's bank account to the new company? Thank you.
Welcome to the Community page,
So yes you can do a journal entry, if you are not sure on how to enter this journal entry into your Quickbooks account then you will need to speak to a trained and qualified accountant who will be able to advise and guide you on how to do this as we are not trained accountants just technical support.
Hello Emma, There are multiple ways you could record this. This is why we mentioned an accountant before in case you want to check with them. You have the option of adding a chart of account bank account for the old company account> then marking the invoice as paid with that chart of account and then when you do transfer it you can use the + symbol and transfer and do a transfer from old to new and save. You can also do this as a journal with one bank account online one and the other on line 2 but it's simpler to use the transfer option Alternatively if you don't want to record the old account you could when marking the invoice as paid select the undeposited fund's account. This closes the invoice as paid and then when it comes to transferring the money into the new account you can go to + symbol and bank deposit and tick the transaction and deposit it into the bank. You could also create a contra chart of account to pay the funds to(like a holding account) and then do a journal to move it off the contra account into the other bank account when you do move the money. There are also options if you want to record the original payment as being a loan to the business that you then pay back but unless you think that's more appropriate one of the above options fits better with the circumstances. Is this being recorded on the old companies books or is that irrelevant as to how you want to record the transaction? Any Q's at all just ask.
Many thanks for that John, I'll have a think about the best option. The payment is not being recorded on the old company's books as it isn't anything to do with that company; the payment was just taken on the old company's card payment machine in error.